Introduction

Imagine borrowing a small loan from a mobile app to solve a short-term emergency—only to discover days later that the lender has sent embarrassing messages to your family, friends, and coworkers, calling you a debtor or even labeling you a fraud. Unfortunately, this scenario is all too common in Nigeria.

Many loan apps in Nigeria have gained notoriety for invading users’ privacy, particularly by accessing and contacting borrowers’ phone contacts to shame or pressure them into repayment. But is this legal? Can loan apps actually call or message your contacts? What does the law say about such practices?

This article explores the legality of loan apps calling your contacts in Nigeria, the regulatory frameworks in place, your rights as a borrower, and how to protect yourself from unlawful harassment.

Why Loan Apps Access Your Contacts

When installing many loan apps, users are prompted to grant access to several permissions, including:

• Contact lists

• SMS messages

• Call logs

• Location

• Photos and media

Most people click “Allow” without reading the fine print. Once granted, the loan app can view, download, and even store your contacts on its server. The goal? To use your contacts as leverage in case of delayed or defaulted loan repayments.

Some loan apps go as far as sending text messages, WhatsApp messages, or placing calls to your contacts, falsely claiming the borrower is a fraudster, thief, or absconder. These tactics are intended to shame, embarrass, and coerce the borrower into paying up.

Is It Legal for Loan Apps to Call or Message Your Contacts?

No. It is illegal for loan apps to call or message your contacts in Nigeria.

This act violates several Nigerian laws and regulations, particularly those related to:

1. Data Privacy

2. Consumer Protection

3. Defamation and Harassment

Let’s break these down:

1. Nigeria Data Protection Act (NDPA, 2023)

The Nigeria Data Protection Act protects the personal data of Nigerian citizens, including contact information. Under this law:

• Personal data must only be used for purposes explicitly agreed to by the data subject.

• Data subjects (you) must be informed of how their data will be used.

• Sharing your contacts’ information without their consent is a clear violation of their data privacy rights.

So, even if you gave the loan app permission to access your contacts, they cannot legally use that information to message or harass those individuals—especially without their knowledge or consent.

2. Nigeria’s Constitution (1999, as amended)

Section 37 of the Nigerian Constitution guarantees the right to privacy for all citizens. This includes:

• The privacy of your communications

• The privacy of your telephone conversations

• The confidentiality of your correspondence

Loan apps that access your contact list and then reach out to people without court orders or due process breach your constitutional rights.

3. Federal Competition and Consumer Protection Commission (FCCPC) Regulations

In recent years, the FCCPC has taken firm action against abusive loan apps. In collaboration with the Central Bank of Nigeria (CBN), National Information Technology Development Agency (NITDA), and Independent Corrupt Practices Commission (ICPC), the FCCPC issued regulations banning:

• Harassment of borrowers

• Use of defamatory messages

• Contacting unrelated third parties

• Unauthorized data access and use

Only registered and approved digital lenders that comply with the FCCPC’s rules can now legally operate in Nigeria.

4. Cybercrimes (Prohibition, Prevention, Etc) Act, 2015

This law prohibits the unauthorized access and abuse of data. Using your phone’s contacts to target people with threatening or defamatory messages can fall under cyber harassment and unlawful data usage.

5. Defamation Laws

Publicly calling someone a thief, fraudster, or criminal without evidence is defamation, whether done via text, call, or online message. If a loan app falsely accuses you or informs others without proof, you can sue for libel or slander under Nigeria’s defamation laws.

FCCPC’s Crackdown on Illegal Loan Apps

In 2022 and 2023, the FCCPC launched aggressive enforcement actions against several loan apps engaged in unethical practices. These included:

• Removing apps from the Google Play Store

• Freezing bank accounts

• Investigating and prosecuting abusive loan companies

• Releasing a list of approved digital lenders allowed to operate in Nigeria

You can view the FCCPC’s official list of registered loan apps on their website:
https://www.fccpc.gov.ng

If a loan app isn’t listed, they’re not authorized to operate—and their actions are likely illegal.

What You Can Do If a Loan App Calls Your Contacts

If you or someone you know has been harassed by a loan app, take these steps:

1. Document the Harassment

• Take screenshots of messages sent to your contacts.

• Record any voice messages or calls.

• Ask your contacts to confirm they received defamatory texts.

This will be valuable evidence if you decide to file a complaint or legal action.

2. Report the Loan App to Authorities

You can file a complaint with the following agencies:

• FCCPC: contact@fccpc.gov.ng

• NITDA (for data privacy violations): info@nitda.gov.ng

• CBN: Submit complaints via your bank or directly through their online platform

• Google Play Store: Report the app under “Flag as inappropriate”

3. Sue for Defamation or Privacy Violation

If the messages caused you public shame or damaged your reputation, you may have grounds to file a civil lawsuit. A lawyer can help you demand:

• A public apology

• Compensation for emotional and reputational damage

• A court order for the app to stop harassing you

4. Use Only Approved Loan Apps

Going forward, avoid borrowing from unknown or unverified loan apps. Instead, consider reputable and registered lenders like:

• Branch

• FairMoney

• Carbon

• Renmoney

• Palmcredit

Check the FCCPC’s database before installing any financial app.

How to Borrow Safely Without Risking Your Contacts

Want to avoid loan app embarrassment? Here are tips to borrow responsibly and maintain your dignity:

• Read permission requests carefully before installing any loan app.

• Do not grant access to contacts unless absolutely necessary.

• Pay back loans on time to avoid harassment.

• Use formal channels like banks, microfinance institutions, or regulated apps.

• Check user reviews and privacy policies before using a financial platform.

Conclusion

Loan apps do not have the legal right to call, message, or threaten your contacts. Any such action violates Nigeria’s data protection, privacy, and consumer rights laws—and could even be grounds for criminal prosecution.

As a borrower, you have rights, and regulatory bodies like the FCCPC are working to ensure loan apps operate fairly and transparently. If you’ve been harassed or defamed, speak up, gather evidence, and report the app to the proper authorities.

Protect your personal data, borrow responsibly, and always use verified, approved lending platforms.

Key Takeaways

• Loan apps cannot legally call or message your contacts without consent.

• These actions violate the Data Protection Act, FCCPC regulations, and constitutional privacy rights.

• Always check if a lender is registered with FCCPC before borrowing.

• If harassed, document the evidence and file a complaint.

• Use only reputable, CBN-licensed loan apps and avoid giving unnecessary app permissions.