Court Upholds NIBSS’s Legal Authority To Manage BVN Database, Dismisses Privacy Violation Claims

The Federal High Court in Abuja on Friday affirmed the statutory authority of the Nigeria Inter-Bank Settlement System Plc (NIBSS) to maintain and manage the Bank Verification Number (BVN) database across Nigeria, ruling that its operations are consistent with the Central Bank of Nigeria (CBN) Act and other applicable banking laws.

Justice James Omotosho delivered the judgment in a suit instituted by NIBSS, with Wolemi Esan, SAN, as lead counsel. The case listed the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation as first to third defendants, respectively.

In the suit, NIBSS sought a declaration that its management of BVN data does not violate the constitutional right to privacy. It also requested a perpetual injunction restraining any individual, institution, or entity from challenging its legal mandate to manage the BVN system.

Delivering judgment, Justice Omotosho held that NIBSS’s operations are lawful, constitutionally justified, and essential to the integrity and security of Nigeria’s financial system. He noted that the CBN has express regulatory authority under Section 47(2) of the CBN Act, 2007, to develop and oversee payment and settlement systems.

The court held that:

“NIBSS has the power to manage the BVN,” and ruled that such data management does not infringe on the right to privacy under Nigerian law.

Justice Omotosho granted all the reliefs sought by the plaintiff and declared that:

• NIBSS is legally empowered to manage and maintain the BVN database.
• The management of the BVN does not violate any privacy rights.
• The Incorporated Trustees of Digital Rights Lawyers Initiative and any other persons or institutions are perpetually restrained from challenging NIBSS’s statutory role.

The judge stated that the judgment is a judgment in rem, meaning it applies universally and stands unless overturned by a higher court.

The decision followed submissions from CBN’s counsel, Kofo Abdulsalam-Alada, who defended NIBSS’s mandate and described the BVN as a critical tool for financial security and fraud prevention. He maintained that the CBN’s directives regarding the BVN are grounded in both the CBN Act and the Banks and Other Financial Institutions Act (BOFIA) 2020.