In a significant ruling on Wednesday, May 15, Justice Nnamdi Dimgba of the Federal High Court in Lagos upheld a new regulation by the Central Bank of Nigeria (CBN) requiring financial institutions to collect the social media handles of their customers as part of the standard Know-Your-Customer (KYC) procedures.
Justice Dimgba dismissed a suit filed by Lagos-based lawyer Chris Eke, who sought a declaration that the regulation, as outlined in Section 6(a)(iv) of the Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023, was unconstitutional. Eke, represented by his lawyer Olubunmi Abayomi-Olukunle, filed the suit in July 2023, arguing that the regulation violated Section 37 of the 1999 Constitution, which protects the right to privacy.
Eke had requested the court to issue a perpetual injunction restraining the CBN from enforcing the regulation, claiming it was undemocratic and null and void. However, the CBN responded with a notice of preliminary objection, challenging the suit’s competence and asserting that the regulation did not interfere with customers’ private lives.
In his judgment, Justice Dimgba held that the CBN’s preliminary objection was valid and struck out Eke’s suit. The judge explained that providing social media handles was comparable to providing email addresses or phone numbers, which are standard pieces of contact information used for customer verification and due diligence. He emphasized that the regulation did not constitute an infringement on the right to privacy.
Justice Dimgba further reasoned that the purpose of a social media account is for public communication, making it unreasonable to claim that the CBN’s requirement breached privacy rights. He concluded that the regulation is a legitimate part of the KYC process, aimed at ensuring that potential bank customers are appropriately vetted.
This ruling reinforces the CBN’s position on enhancing customer due diligence through the inclusion of social media handles, reflecting a broader effort to strengthen financial regulations and security measures within the banking sector.
