Taking a loan shouldn’t mean signing away your dignity. Unfortunately, many Nigerians believe that once they borrow money, lenders have unlimited power over them. This couldn’t be further from the truth. Whether you borrowed ₦5,000 or ₦500,000, Nigerian law protects you from abuse, harassment, and exploitation.
The good news? Regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN) have established clear rules. These rules protect borrowers from predatory lenders. Moreover, the Nigeria Data Protection Act (NDPA) of 2023 shields your personal information from misuse.
Let’s explore exactly what rights you have. Additionally, we’ll show you how to exercise them confidently.
Your Fundamental Rights as a Nigerian Borrower
1. The Right to Privacy and Data Protection
Your personal information is yours alone. Under the NDPA 2023, loan apps cannot:
- Access your contacts without clear, explicit consent
- Share your photos with anyone
- Publish your personal details on social media
- Send your information to third parties without permission
- Use your data for purposes beyond the loan agreement
Furthermore, any app that accesses your phone’s gallery, messages, or contacts without your knowledge is breaking the law. This is not just unethical, it’s illegal. The Nigeria Data Protection Commission (NDPC) actively investigates these violations.
What this means for you: If a loan app shares your photos on Facebook or WhatsApp, they’ve committed a crime. Similarly, if they send defamatory messages about you to your contacts, you can take legal action. You don’t have to accept this behavior silently.
2. The Right to Fair Debt Collection Practices
Owing money doesn’t give lenders the right to harass you. According to the FCCPC’s Digital Lending Regulations 2025, loan apps must:
- Use ethical recovery methods only
- Stop calling you excessively (more than twice daily is harassment)
- Avoid contacting you between 9 PM and 7 AM
- Refrain from threatening you with false legal action
- Never claim you committed a crime for defaulting on a loan
Additionally, debt recovery is purely a civil matter in Nigeria. Therefore, no loan app can have you arrested for non-payment. Any threats of police involvement are illegal intimidation tactics.
What this means for you: If recovery agents call you 20 times a day, threaten your family, or claim they’ll “come for you,” they’re violating your rights. Document every instance. Then, report them immediately to the FCCPC.
3. The Right to Transparent Loan Terms
Before you sign any loan agreement, lenders must provide:
- Clear breakdown of interest rates
- Total repayment amount (principal + interest)
- Repayment schedule and due dates
- All fees and charges upfront
- Consequences of late payment
The FCCPC prohibits “unfair, unreasonable, and unjust terms” in loan contracts. Consequently, hidden fees, surprise charges, or terms that appear only after disbursement violate your rights.
What this means for you: If you borrowed ₦10,000 but suddenly owe ₦25,000 without clear explanation, this is likely illegal. Request a full breakdown in writing. If they refuse to provide it, report them.
4. The Right to Complaint Redressal
Every registered loan app must have:
- A working customer service channel
- An official email address
- A physical office address
- A complaints resolution mechanism
According to the CBN Consumer Protection Framework, financial institutions must establish effective complaint channels. They must also respond to complaints within reasonable timeframes.
What this means for you: You’re not helpless when things go wrong. Moreover, you have the right to escalate unresolved issues to the FCCPC or CBN. These agencies exist to protect you.
5. The Right to Be Free from Defamation
Perhaps most importantly, no lender can destroy your reputation. Sending messages like “This person is HIV positive,” “This borrower is a thief,” or “Wanted fraudster” to your contacts is:
- Criminal defamation
- A violation of your fundamental human rights
- Punishable under Nigerian law
The FCCPC has explicitly banned public shaming. Additionally, they’ve delisted numerous apps for this practice. The 2025 regulations impose fines up to ₦100 million on violators.
What this means for you: Defamation causes real harm, lost jobs, broken relationships, and emotional trauma. If you’ve been defamed, you have legal grounds for action. You can sue for damages.
Many loan sharks operate unregistered. Therefore, they avoid regulatory oversight. Additionally, they use APK files instead of Google Play Store. This makes them harder to track. Furthermore, some apps change names repeatedly to escape delisting.
However, the tide is turning. The FCCPC has delisted over 100 illegal apps since 2022. Moreover, they’re working with Google to remove violators. The 2025 regulations give authorities even more power to act.
How to Stand Up for Your Rights: Practical Steps
Step 1: Know Whether Your Lender Is Legal
Before borrowing, verify the app’s registration:
- Check the FCCPC website for approved lenders
- Look for CBN licensing information
- Verify their physical office address
- Confirm they have official contact details
If you’ve already borrowed from an unregistered app, don’t panic. You still have rights. However, dealing with them requires extra caution.
Step 2: Document Everything
Keep detailed records:
- Screenshots of all threatening messages
- Call logs showing harassment frequency
- Loan agreement and terms
- Payment receipts and transaction history
- Messages sent to your contacts
This evidence is crucial. It supports your complaint when you report them. Additionally, it protects you if the matter escalates legally.
Step 3: Assert Your Boundaries in Writing
Send a formal message to the loan app:
“I acknowledge my debt of [amount]. However, your recovery methods violate FCCPC regulations and NDPA 2023. Cease all contact with third parties. Stop harassing calls. Communicate only through [your preferred channel]. I’m willing to discuss a repayment plan. Further violations will be reported to authorities.”
Save their response (or lack thereof). This shows you attempted a reasonable resolution.
Step 4: Report Violations to the Right Authorities
Federal Competition and Consumer Protection Commission (FCCPC):
- Email: lenderstaskforce@fccpc.gov.ng
- Website: fccpc.gov.ng (File a Complaint section)
- X (Twitter): Send direct messages to @fccpcnigeria
Nigeria Data Protection Commission (NDPC):
- For privacy violations and data misuse
- Report through their official website or Email info@ndpc.gov.ng
Your Bank:
- If unauthorized debits occur
- Request investigation of fraudulent transactions
- Ask to block further deductions
Step 5: Use PebbleScore to Protect Your Future
Understanding your credit situation empowers you. PebbleScore provides:
- Access to your credit reports from all three bureaus
- Tools to dispute errors affecting your credit
- Help removing unjust BVN blacklisting
- Credit repair guidance to improve your score
When you understand your credit standing, you’re less vulnerable. Moreover, you can access better lending options. This reduces dependence on predatory apps.
What Happens When You Report: Real Consequences for Violators
The FCCPC takes complaints seriously. Recent enforcement actions include:
- Delisting: Over 100 apps removed from Google Play Store
- Fines: Up to ₦100 million for serious violations
- Prosecution: Criminal charges for severe cases
- License Revocation: Permanent ban from lending in Nigeria
Additionally, public awareness is increasing. Social media campaigns expose bad actors. Therefore, loan sharks face reputational damage when exposed.
Special Protection: When Threats Escalate
If You’re Threatened with Physical Harm
Contact the police immediately. Debt collection never justifies violence. The police can issue a restraining order. Additionally, they can investigate criminal threats.
If Your Employment Is Threatened
Document the interference. Then, inform your HR department about the harassment. Many employers understand these situations. Furthermore, you can file a workplace harassment complaint against the loan app.
If You’re Experiencing Mental Health Crisis
The psychological toll of loan app harassment is real. Seek support from:
- Mental health professionals
- Trusted family or friends
- Religious or community leaders
- Support groups for debt stress
Remember, your life and wellbeing matter more than any debt. There are always solutions beyond what loan sharks claim.
Your Rights Don’t Depend on Your Ability to Pay
Here’s something crucial to understand: You have a moral and legal obligation to repay borrowed money. However, this doesn’t mean you forfeit your dignity. Even if you’re struggling financially, lenders must still:
- Treat you respectfully
- Follow legal recovery processes
- Protect your privacy
- Avoid harassment and defamation
Financial difficulty is not a crime. Therefore, you deserve compassion, not abuse.
Moving Forward: Building a Better Borrowing Future
Learn from the Experience
This challenging situation offers lessons:
- Always verify lenders before borrowing
- Read terms carefully before accepting loans
- Maintain an emergency fund if possible
- Understand your credit score and history
Rebuild Your Financial Confidence
PebbleScore helps you recover and rebuild:
1. Repair Your Credit
- Our AI-powered tools identify credit report errors
- We guide you through the dispute process
- We help remove unfair blacklisting
- Pay back your loans through our Credit Repair Feature
2. Improve Your Score
- Build credit using airtime and utility payments
- Learn strategies to boost your creditworthiness
- Access better loan options in the future
3. Find Better Lenders
- Connect you with ethical, low-interest options
- Help you avoid predatory apps
- Match you with lenders who respect your rights
Share Your Knowledge
Help others avoid your experience. Share information about:
- Borrower rights in Nigeria
- Red flags of predatory lenders
- How to report loan app harassment
- Resources like PebbleScore
When more Nigerians understand their rights, loan sharks lose power. Your voice matters.
Conclusion: You Are Not Powerless
The loan app industry in Nigeria is changing. Regulations are strengthening. Enforcement is improving. Consumer awareness is growing.
You have rights. These rights are protected by law. Moreover, regulatory agencies are there to enforce them. Therefore, you don’t have to suffer harassment, defamation, or abuse silently.
Stand up. Document violations. Report unethical lenders. Use tools like PebbleScore to protect your financial future.
Remember: Owing money doesn’t make you a criminal. It doesn’t give lenders unlimited power over your life. You deserve respect, privacy, and fair treatment always.
Ready to take control of your credit and protect your financial future? Download the PebbleScore app today from Google Play Store or Apple App Store. Get access to your credit report, dispute errors, and access ethical lending options. Your rights matter. Your future matters. We’re here to help you protect both.