Introduction

Imagine waking up to a barrage of messages from friends, family, and colleagues—accusing you of being a fraud or a criminal. The culprit? A loan app that has sent defamatory messages to your contact list in a bid to shame you into repayment.

Sadly, this is a common tactic used by many illegal or unregulated loan apps operating in Nigeria. While such harassment is unethical, it is also a criminal offense and a civil wrong under Nigerian law.

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.

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What is Defamation in Nigerian Law?

Defamation occurs when someone publishes a false statement that harms your reputation.

There are two main types:

• Libel – written or published defamation (e.g., text messages, WhatsApp broadcasts)
• Slander – spoken or verbal defamation (e.g., voice notes or calls)

If a loan app sends messages to your contacts claiming you’re a thief, criminal, or scammer—without proof—they have committed libel, and you can sue for damages.

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Legal Grounds for Suing a Loan App

You can sue a loan app under:

Tort Law

Defamation is a civil wrong. You can sue for damages in a High Court.

Data Privacy Violations

If they accessed and used your contact list without consent, they violated the Nigeria Data Protection Act (NDPA).

Cybercrime Act 2015

Publishing false or harmful information electronically is punishable under the Cybercrime (Prohibition, Prevention, etc.) Act.

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Step-by-Step Guide to Suing a Loan App for Defamation in Nigeria

Step 1: Gather Solid Evidence

Before approaching a lawyer or court, you must collect concrete proof of the defamation.

Here’s what to gather:

• Screenshots of the defamatory messages
• Names and phone numbers of recipients (friends or relatives who got the messages)
• Screenshots of the app’s user interface showing how they accessed your contacts
• Voice recordings (if any)
• Call logs or WhatsApp chats from loan agents
• Your loan agreement (if available)

Save all evidence in a cloud storage or email backup.

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Step 2: Identify the Loan App and Company Behind It

You must identify the registered business name, address, and owners of the loan app.

Do this by:

• Searching the app on Google Play Store or App Store
• Checking the FCCPC list of approved lenders: https://www.fccpc.gov.ng
• Searching the company name on CAC portal: https://search.cac.gov.ng
• Identifying the financial institution they operate under (usually a licensed Microfinance Bank)

If the company is untraceable or unregistered, you can still report them to authorities (more on this below).

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Step 3: Report to Relevant Regulatory Authorities

Before going to court, report the incident to these regulators:

FCCPC (Federal Competition and Consumer Protection Commission)

Email: contact@fccpc.gov.ng
Submit: Screenshots, loan details, and your written complaint

NITDA (National Information Technology Development Agency)

Email: info@nitda.gov.ng
Focus: Data privacy violations

NPF Cybercrime Unit (Nigeria Police Force)

Visit the cybercrime unit in your state or lodge a report at any police station with your evidence.

These agencies can fine, delist, or shut down the offending loan app—even before you go to court.

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Step 4: Hire a Legal Practitioner

Next, consult a lawyer specializing in defamation or digital rights.

Your lawyer will help:

• Draft and issue a pre-action notice to the loan company
• Determine if the matter should be filed in a State High Court or Federal High Court
• Calculate your damages (i.e., compensation for emotional distress, loss of reputation, etc.)

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Step 5: File a Civil Lawsuit

Your lawyer will file a civil action against the loan app’s parent company for defamation.

You may sue for:

• General damages for reputation damage
• Special damages for job loss, mental distress, or health impact
• Punitive damages (to punish and deter future abuse)

Legal costs vary but are worth it if the case is strong.

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Step 6: Consider Class Action (Group Lawsuit)

If multiple victims have suffered defamation from the same app, you can file a class action lawsuit.

This increases your chances of success and reduces cost per individual. Your lawyer will guide on how to group similar cases and file jointly.

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Step 7: Publicize Your Case (Cautiously)

You can:

• Share your story with legit news outlets
• Post on social media with proof (avoid unverified claims)
• Join advocacy platforms like Paradigm Initiative or Digital Rights Nigeria

Caution: Don’t defame the loan app in return—stay factual and avoid counter-libel.

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How Much Compensation Can You Get?

While courts decide on a case-by-case basis, you may be awarded:

• ₦500,000 to ₦5 million in general damages
• Higher amounts if the loan app’s defamation led to job loss, marriage breakup, depression, or health complications

Some Nigerian victims have received court judgments in the millions of naira for similar offenses.

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Alternatives to a Lawsuit

If you’re not ready to go to court, consider these options:

• Petition the National Assembly or your State House of Assembly
• Engage a media lawyer to issue a cease-and-desist letter
• Join social justice advocacy campaigns for faster response

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How to Protect Yourself From Defamatory Loan Apps

• Only borrow from FCCPC-approved or CBN-licensed apps
• Read app permissions before installing (deny access to contacts)
• Pay on time to avoid penalties
• Report any illegal activity immediately

If an app insists on unethical conduct, uninstall and file a complaint with the regulators.

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Conclusion

Loan apps do not have the legal right to shame you into repaying a loan. Sending false, defamatory messages about you to your contacts is not only unethical—it is a criminal and civil offense in Nigeria.

If you’ve been a victim, don’t stay silent. Gather your evidence, report to the proper authorities, and consult a lawyer to seek justice. The Nigerian legal system recognizes your right to defend your name, privacy, and dignity.

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Key Takeaways

• Defamation by loan apps is illegal under Tort Law, Cybercrime Act, and NDPA
• You can sue for damages in a civil court
• Gather screenshots, chat records, and voice messages as evidence
• Report to FCCPC, NITDA, and NPF Cybercrime Unit before or alongside legal action
• Hire a reputable lawyer to file the case or send a pre-action letter
• Class action is an option if others have experienced similar abuse