By Na’ankwat DariemOn | Nov 29, 2023
The National Commissioner/CEO of the Nigeria Data Protection Commission (NDPC), Dr Vincent Olatunji, has urged for collaborative efforts to tackle the challenges posed by loan sharks. These efforts include ensuring compliance, strengthening legal frameworks, and increasing public awareness to mitigate the impacts of loan sharks on individuals and the financial system.
Dr. Olatunji made this call during the 22nd Annual Seminar on Banking and Allied Matters for Judges, with the theme “The Financial Service Industry and the Judiciary, Upscaling for a Sound Economic Ecosystem.” The seminar was organized by The Chartered Institute of Bankers of Nigeria in collaboration with the National Judicial Institute.
During his presentation on “NDPA 2023 and its Impact on Loan Sharks in Nigeria,” Dr. Olatunji emphasized the challenges presented by digital lending companies, commonly known as loan sharks, which have become a global phenomenon.
He highlighted the detrimental effects on borrowers, including damage to their reputation, social stigma, psychological stress, and even fatalities. Dr. Olatunji emphasized the alarming trend where borrowers neglect to read the privacy policies of these loan sharks, leading to these adverse consequences.
He further informed the audience that the National Committee of Regulators has joined forces to implement effective measures for licensing, monitoring regulatory frameworks, and overseeing the technologies employed by digital lending companies. The objective is to ensure that their operations are lawful, fair, and transparent.
Dr. Ken Opara, the President of the Chartered Institute of Bankers of Nigeria, highlighted that the seminar aimed to bring stakeholders in the banking and judiciary sectors together to establish a unified position on complex legal issues that have implications for the banking industry.
Opara also underscored some issues facing the financial services industry, including the issuance of bankers’ orders by magistrate courts, EFCC’s Post No Debit Order, and the inappropriate deployment of garnishee, among others.
He reiterated the need for the establishment of a specialized court to exclusively handle commercial and financial cases, as opposed to having divisions within the existing court structure.
On the issue of cybercrime, Opara highlighted the susceptibility of the financial sector to cyber-attacks. He emphasized the importance of enhancing capacity building in all sectors of the economy to combat this growing trend.
