Justice James Omotosho of the Federal High Court, Abuja, has fixed 4 July for judgment to determine the legality of the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) management of the Bank Verification Number (BVN) database, said to be in line with the Central Bank of Nigeria (CBN) Act and other relevant banking laws
The judge fixed the date after listening to both parties—representatives of NIBSS and the Central Bank of Nigeria—Messrs Babatunde Ige and Kofo Abdulsalam-Alada.
At the day’s proceedings, counsel to NIBSS, Ige, urged the court to uphold his client’s reliefs.
In his court filings, Ige asked the court to hold that NIBSS’ management of the BVN database is statutorily authorised, constitutionally justified, and essential for maintaining the stability and security of Nigeria’s financial system.
He submitted that the power of the apex financial system regulator to issue directives on BVN development is derived from the provisions of the Central Bank of Nigeria Act 2007 and the Banks and Other Financial Institutions Act 2020.
He stressed that the CBN is empowered under Section 47(2) of the CBN Act to develop payment and settlement systems in Nigeria.
“Pursuant to this, NIBSS was established alongside all the other banks in Nigeria”, he added.
According to him, the CBN Act empowers the apex bank to promote a sound financial system in the country.
He urged the court to note that the introduction of the BVN in Nigeria is aimed at promoting a sound financial system.
“The security of the deposits of the average Nigerian or even non-Nigerians who bank with banks in Nigeria is very key”, he continued.
The counsel concluded by asking the court to consider the importance of the BVN framework and its operationalisation by NIBSS in affirming that the plaintiff has the power to maintain the BVN database in Nigeria.
After hearing submissions from the lawyers, Justice Omotosho reserved judgement until 4 July.
Through its originating processes, NIBSS joined the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation (AGF) as first to third defendants, seeking a restraining order to prevent any institution from challenging its statutory authority to maintain and manage the BVN database.
Reliefs Sought
NIBSS is seeking a declaration that it is statutorily empowered to maintain and manage the BVN database pursuant to the Central Bank Act 2007, the Banks and Other Financial Institutions Act 2020, and the Revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021.
It also seeks: “A declaration that the plaintiff’s maintenance and management of the Bank Verification Number (BVN) data of Nigerians does not violate their constitutional right to privacy or any extant laws in force in Nigeria;
“An order of perpetual injunction restraining the 1st Defendant (Digital Rights Lawyers Initiative) and any other entity, person, or institution—whether directly or through agents, officers, employees, privies, or any person acting under their instruction or control—from contesting the plaintiff’s statutory authority to maintain and manage the BVN database.”
According to the senior lawyer, the plaintiff (NIBSS) is responsible for initiating, developing, and regulating an integrated, nationwide network for electronic and paperless payments, funds transfer, and settlement of transactions pursuant to the aforementioned laws and statutes.
NIBSS also accused the Digital Rights Lawyers Initiative of filing multiple suits—either directly or through proxies—challenging its authority to manage the BVN database and alleging that such management violates constitutional privacy rightsChannels.
