The Federal High Court in Lagos has affirmed a new regulation introduced by the Central Bank of Nigeria (CBN).
This regulation necessitates financial institutions to obtain and record the social media handles of their clients as a standard part of the Know-Your-Customer (KYC) process.
Justice Nnamdi Dimgba, the presiding judge, ruled on Thursday, May 16, that this regulation does not infringe on the privacy rights of bank customers.
A lawsuit filed by Lagos-based attorney Chris Eke was dismissed by Justice Dimgba. Eke had sought a declaration that the regulation, as stated in Section 6(a)(iv) of the Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023, was undemocratic, unconstitutional, null, and void due to its inconsistency with Section 37 of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
Eke had requested the court to issue a perpetual injunction to prevent the CBN from enforcing the regulation, which requires financial institutions to ask for customers’ social media handles as part of the standard bank customer due diligence requirements.
In response to the lawsuit, the CBN filed a notice of preliminary objection, questioning the suit’s competence. The apex bank also disputed the claim that the said regulation interferes with the applicant’s private life.
Justice Dimgba, in his judgment, agreed with the notice of preliminary objection and subsequently dismissed the suit. He stated that providing a social media handle is akin to providing an email address, phone numbers, and other contact information for a potential bank customer for due diligence purposes. Therefore, the regulation does not infringe on the right to privacy.
Justice Dimgba further explained that the purpose of having a social media account is to be publicly visible in terms of communication. Therefore, it would be highly unreasonable to accuse the CBN of breaching privacy for it.
The judge concluded that the applicant’s claim that the CBN Regulations requiring financial institutions to request and collect the social media handle of its customers as part of KYC infringes on his right to privacy is ambitious and far-fetched. The regulations are directed at and apply to financial institutions, not private individuals like the applicant. Even if the regulations were to affect the applicant, this claim is speculative as there is no evidence that the applicant operates an account with a financial institution that had demanded his social media handle. Therefore, the suggestion that he would be negatively affected by this regulation is speculative and unfounded.
