The Federal Excessive Court docket in Abuja on Friday affirmed the legality of the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) administration of the Bank Verification Quantity (BVN) database throughout Nigeria, in step with the Central Bank of Nigeria (CBN) Act and different related banking legal guidelines.
Justice James Omotosho delivered the judgment in a case filed by Wolemi Esan, SAN, lead counsel to NIBSS, involving Kofo Abdulsalam-Alada, lead counsel for the CBN, amongst others.
Nairametrics beforehand reported that NIBSS’s lead counsel, Esan, by means of originating processes seen by Nairametrics, had joined the Integrated Trustees of Digital Rights Legal professionals Initiative, the CBN, and the Attorney General of the Federation (AGF) as first to 3rd defendants.
He sought a restraining order to stop any establishment in Nigeria from difficult NIBSS’s statutory authority to keep up and handle the BVN database.
He additionally sought:
“A declaration that the plaintiff’s upkeep and administration of the Bank Verification Quantity (BVN) information of Nigerians doesn’t violate their constitutional proper to privateness or any extant legal guidelines in pressure in Nigeria.
“ An order of perpetual injunction restraining the first Defendant (Digital Rights Legal professionals Initiative), and another entity, individual, or establishment whether or not instantly or by means of brokers, officers, staff, privies, or any individual appearing underneath their instruction or management from contesting the plaintiff’s statutory authority to keep up and handle the BVN database,” the reliefs partly learn.
Authorized Dispute
In line with the senior lawyer, the plaintiff (NIBSS) is liable for initiating, growing, and regulating an built-in, nationwide community for digital and paperless funds, funds switch, and settlement of transactions pursuant to the aforementioned legal guidelines and statutes.
NIBSS had accused the Digital Rights Legal professionals Initiative of submitting a number of fits, both instantly or by means of proxies, difficult its authority to handle the BVN database and alleging that such administration violates constitutional privateness rights.
On his half, the CBN lead counsel, Abdulsalam-Alada, drew the court docket’s consideration to his counter-affidavit filed on February 11, 2025.
In his court docket filings, he urged the court docket to carry that NIBSS’s administration of the BVN database is statutorily licensed, constitutionally justified, and important for sustaining the steadiness and safety of Nigeria’s monetary system.
“The initiative doesn’t infringe on the constitutional proper to privateness however reasonably serves as a essential instrument for safeguarding public curiosity and enhancing monetary safety,” he added.
He mentioned the ability of the apex monetary system regulator to concern directives on BVN improvement is derived from the provisions of the Central Bank of Nigeria Act of 2007 and the Banks and Different Monetary Establishments Act of 2020.
He pressured that the CBN has the ability underneath Part 47(2) of the CBN Act to develop cost and settlement methods in Nigeria.
Court docket Judgment
- Delivering his judgment on Friday, Omotosho held that the powers of the CBN to make monetary rules are additionally established within the Banks and Different Monetary Establishments Act (BOFIA) 2020.
- The decide pressured that the BVN doesn’t represent a breach of anybody’s basic proper to privateness.
“NIBSS has the ability to handle the BVN,” the decide mentioned, citing related CBN legal guidelines.
“The court docket grants the reliefs of NIBSS as prayed,” the decide acknowledged.
- The decide subsequently declared that NIBSS is empowered by regulation to keep up the BVN.
- The decide additionally declared that NIBSS’s administration of the BVN doesn’t violate privateness rights in Nigeria.
- Omotosho additional restrained the Digital Rights Legal professionals Initiative and another entity, individual, or establishment from difficult NIBSS’s administration of the BVN.
- The decide concluded that his verdict is a judgment in rem (that’s, the judgment upholds a proper as in opposition to the entire world), besides whether it is put aside on enchantment.
What you must know
- This case highlights NIBSS’s authorized efforts to clear all hurdles concerning its upkeep and administration of the BVN.
- NIBSS believes it has the statutory authority to handle the BVN however sought the court docket’s safety following a number of litigations in recent times.
- NIBSS’s authorized transfer is supported by the CBN.
- The BVN is a singular quantity that enables particular person accounts to be verified throughout the Nigerian banking business.
- The BVN is issued to each bank customer at enrollment and is linked to the entire customer’s bank accounts in Nigeria.
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