Introduction

How to Legally Sue a Loan App for Defamation in Nigeria: A Step-by-Step Guide

If you or someone you know has been defamed by a loan app, you can take legal action. This blog post provides a practical, step-by-step guide to suing a loan app for defamation in Nigeria—your rights, the legal process, required evidence, and how to seek justice.

If you’ve ever borrowed money from a loan app in Nigeria, you probably know the fear that comes with late repayment. And if you’ve never borrowed, you’ve probably heard. 

It’s not necessarily the fear of debt, but the fear of embarrassment. One minute, a person is struggling to settle their balance, and the next, your “Oga”, your church WhatsApp group, and even your ex are getting messages calling you a thief . This isn’t fiction, it happens everyday to a lot of Nigerians— but it’s about to go down. 

Nigerians can now fight back legally. Those messages are not only unethical; they’re illegal.

Let’s walk through what defamation really mean, the laws protecting you, and how to sue them legally (and win).

What Exactly Is Defamation?

Defamation is  damaging a person’s reputation through false or misleading statements.
When a loan app sends messages to your contacts name calling you without any legal proof, that’s defamation.

It can be through:

• Libel (written defamation)
• Slander (spoken defamation)

The Laws Protecting You in 2025

Law / Regulation	What It Protects	What Loan Apps Cannot Do
Nigeria Data Protection Act (2023)	Your contact data and consent rights	Access or share your contacts without permission
FCCPC Digital Lending Regulation (2025)	Consumer protection from harassment	Send defamatory or coercive messages
Constitution of Nigeria (Section 37)	Right to privacy	Contact unrelated third parties
Cybercrimes Act (2015)	Digital harassment and data misuse	Threaten or defame you online
Defamation Laws (Torts & Penal Code)	Personal reputation	Publicly label you a fraud or criminal without proof

TOLU’S EXPERIENCE : A REAL LIFE CASE STUDY

Take Tolu, a 27-year-old in Lagos. She borrowed ₦20,000 from a quick loan app during a tough month. When she defaulted for just three days, the company sent messages to her work’s group chat calling her a “habitual debtor.” She was suspended from work out of embarrassment.

Tolu filed a complaint to the Federal Competition and Consumer Protection Commission (FCCPC) where the case was investigated, and by 2024, the company was blacklisted and fined ₦5 million for privacy violation and defamation.

A lot of borrowers do not realize in cases like these, the law is on their side. 

Costs vs benefits: when to sue

Suing is not always about money. One can consider suing when: 

• The messages reached your workplace, caused job loss, or tangible business loss.
• The allegations are false and criminal.
• The app refuses to retract or apologize after a demand.
• You want a public judgment to deter future abuse.

N.B In cases where damage is limited, the app may be made to retract the statements and issue a public apology

Step-by-Step: How to Legally Sue a Loan App for Defamation in Nigeria

Step 1: Gather Evidence

Don’t delete anything.
Save every message, voice note, or WhatsApp broadcast your loan app sent to your contacts. Ask those affected to take screenshots too. Collect dates, time stamps and screenshots with proof of emotional or reputational damage. The more evidence you have, the stronger your case.

Sample timeline checklist to follow (one-page)

1. Day 0–3: Preserve evidence, ask contacts to save messages.
2. Day 3–7: Draft demand letter, send to app, regulators, and app stores.
3. Day 10–30: If no meaningful response, file FCCPC and NDPC complaints.
4. Week 2–8: Seek urgent court injunction if messages continue.
5. Up to 12 months: Full suit for damages and final orders. Use regulator reports as evidence.

Step 2: Report the App to the FCCPC

The FCCPC now has a Digital Lending Unit that investigates such cases.Send an email with your evidence to contact@fccpc.gov.ng or file directly at www.fccpc.gov.ng.
If the app isn’t registered under their 2025 “Approved Digital Lenders List,” they are operating illegally.

Step 3: File a Formal Complaint with NITDA or the Police

The National Information Technology Development Agency (NITDA) handles data privacy violations. You can email info@nitda.gov.ng.

Step 4: Engage a Lawyer for a Civil Lawsuit

After reporting, file a civil case for defamation , privacy violation, breach of data protection, neglect of data .
Your lawyer will file a Writ of Summons in the High Court and demand:

• A public apology
• Damages in monetary terms depending on the harm caused
• A court injunction preventing further harassment

Other Sample damages and remedies you can claim

• General damages for libel (pecuniary and non-pecuniary).
• Special damages where you can show specific financial loss.
• Aggravated damages if conduct was malicious.
• NDPC enforcement penalties and order for data deletion.
• Costs and attorney’s fees.

How Much Can You Get in Compensation?

Type of Damage	Estimated Range (₦)	Example
Emotional distress	₦1,000,000 – ₦3,000,000	Anxiety, embarrassment, loss of sleep
Professional damage	₦2,000,000 – ₦5,000,000	Suspension or job loss due to defamation
Reputational harm	₦5,000,000 – ₦20,000,000	False criminal allegations shared publicly

In 2025, courts have become more sympathetic to data privacy and consumer harassment cases. 

Number of loan apps banned or fined by FCCPC

Year	Banned Apps	Fined (₦ million)
2021	15	12
2022	35	28
2023	72	55
2024	103	91
2025	140+	120+

(Source: FCCPC Annual Digital Lending Report, 2025)

Step 5: File for Criminal Defamation (Optional)

If the app accused you of criminal conduct ,  like calling you a thief ,  that’s criminal defamation under the Penal Code.
It’s punishable by up to two years in prison or a fine of ₦500,000 and above for company directors.

Step 6: Go Public (Wisely)

If the harassment went viral or affected your livelihood, you can take your story public. Make sure you go through the right channels.
Tag @fccpcnigeria, @nitdanigeria, or @officialefcc on social media.

What Borrowers Should Do Going Forward

• Avoid unverified loan apps. Only borrow from FCCPC-approved lenders.
• Read permissions carefully before installing any app. If it asks for “contact access,” that’s a red flag.
• Pay loans early to avoid default penalties.
• Know your rights. 

Final practical tips

Loan apps have helped millions of Nigerians get quick cash in emergencies, but no company has the right to destroy your reputation in the name of debt recovery.
If you’ve been harassed or defamed, the law is on your side. 

• Don’t argue with the app publicly. Preserve the evidence and follow the steps.
• Use social media to name the app only after you have preserved evidence and consulted a lawyer. Public shaming helps but can complicate defamation claims if you repeat false allegations.
• If money is the main issue, consider mediation. Regulators often encourage mediation with oversight.
• If you are vulnerable or low-income, look for pro bono legal clinics. Many bar associations in Nigeria take consumer-rights cases.

Bottom Line:
Harassment isn’t a debt recovery strategy. It’s a crime. And in 2025, Nigerian law is finally treating it like one.