The Federal High Court in Abuja has reserved its judgment until July 4, 2025, to determine the legality of the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) management of the Bank Verification Number (BVN) database in line with the Central Bank of Nigeria (CBN) Act and other relevant banking laws.
Justice James Omotosho fixed the judgment date on Monday after hearing from the legal representatives of NIBSS and the Central Bank of Nigeria (CBN), Messrs. Babatunde Ige and Kofo Abdulsalam-Alada.
Nairametrics previously reported that NIBSS’s lead counsel, Wolemi Esan, SAN, through originating processes seen by Nairametrics, had 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.
Legal Disputes
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.
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 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, the legal teams of Digital Rights Lawyers Initiative and the AGF were not in court despite being served with hearing notices.
- The NIBSS counsel, Ige, urged the court to uphold his client’s reliefs.
- On his part, the CBN lead counsel, Abdulsalam-Alada, drew the court’s attention to his counter-affidavit filed on February 11, 2025.
- In his court filings, he urged the court to hold that NIBSS’ management of the BVN database is statutorily authorized, constitutionally justified, and essential for maintaining the stability and security of Nigeria’s financial system.
“The initiative does not infringe on the constitutional right to privacy but rather serves as a necessary tool for safeguarding public interest and enhancing financial security,” he added.
- He said the power of the apex financial system regulator to issue directives on BVN development was derived from the provisions of the Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act of 2020.
- He stressed that the CBN has the power 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.
- He highlighted that the CBN Act empowers the apex bank to promote a sound financial system in Nigeria.
“We urge your Lordship to note that the introduction of the BVN in Nigeria is for the promotion of 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.
- He concluded by urging the court to consider the importance of the BVN framework and its operationalization by NIBSS in holding that the plaintiff has the power to maintain the BVN database in Nigeria.
After hearing from the lawyers, Justice Omotosho reserved judgment until July 4.
What You Should Know
This case highlights NIBSS’s legal efforts to clear all legal hurdles regarding its maintenance and management of the BVN.
- NIBSS believes it has the statutory authority to manage the BVN but seeks the court’s protection following several litigations against it in recent years.
- NIBSS’ instant legal move is supported by the CBN.
- The BVN is a unique number that allows individual accounts to be verified across the Nigerian banking industry.
This BVN is issued to every bank customer at enrollment and is linked to all of the customer’s bank accounts in Nigeria.
