The Federal High Court in Abuja has reserved its ruling until May 19, 2025, following a request by an association to be joined as a defendant in the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) restraining suit over its management of Bank Verification Number (BVN) database.
Justice James Omotosho fixed the ruling date after hearing from the legal representatives of the joinder applicant—the Incorporated Trustees of Data Privacy Lawyers Association (OPLAN)—as well as the NIBSS and the Central Bank of Nigeria (CBN).
The Attorney General of the Federation was absent during the proceedings.
The suit by NIBSS seeks a restraining order to prevent any institution from challenging its statutory authority to maintain and manage the Bank Verification Number (BVN) database.
According to NIBSS originating processes seen by Nairametrics, NIBSS’s counsel, Ademola Oluwawolemi Esan, SAN, joined the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the AGF as first to third defendants.
Esan is seeking a declaration that NIBSS 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.
He 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.”
Facts of the Case
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 provisions of the Framework, NIBSS, as a designated participant in BVN operations, is statutorily authorized to manage and maintain the BVN database and ensure its seamless operation, among other functions,” he stated.
NIBSS 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 rights.
What Transpired in Court
At the resumed hearing, Ayomide T. Ahmed appeared on behalf of the Data Privacy Lawyers Association, seeking to be joined as a defendant in the suit.
- He argued that the outcome of the case would impact the rights of his client and its members, especially regarding the BVN, and in light of the relief sought to bar any institution from challenging NIBSS’s authority.
- OPLAN stated that it is an association of experts in privacy and data protection, whose members are directly affected by the subject matter due to their objectives and ownership of bank accounts.
- Counsel for the CBN, Abdulfatai Oyedele, argued that any party seeking to be joined must attach a proposed defence, highlighting that OPLAN failed to do so.
“This application is not only overreaching but also an abuse of court process,” he said.
While he admitted not filing a counter-affidavit, he noted that he was challenging the application on points of law.
- Esan, the NIBSS counsel, emphasized that submitting a proposed defence is a legal requirement for joinder applications.
- He also alleged that the chairman of the party seeking joinder is also the counsel for the first defendant and one of its trustees.
“What they do is sue all over the country. The matter is never heard on its merit. They withdraw, and when the case is finally about to be heard, they bring an application to delay the hearing,” he claimed.
- He urged the court not to waste judicial time and to dismiss the joinder application.
- In response, the judge assured all parties that he knows how to handle frivolous applications.
He then adjourned for ruling on the joinder request until May 19, 2025—and possibly for hearing the substantive suit.
What You Should Know
A BVN is a unique number that allows individual accounts to be verified across the Nigerian banking industry. It is issued to every bank customer at enrollment and is linked to all of the customer’s bank accounts in Nigeria.
According to NIBSS, the BVN provides a unique identity that can be verified across all Nigerian banks, ensuring protection against unauthorized access to customers’ accounts.
Recent CBN directives now mandate that every financial account—including those held with fintechs—must be linked to a BVN before it can become operational.
