A Federal High Court in Abuja has upheld the legality of the Nigeria Inter-Bank Settlement System Plc (NIBSS) as the authorized manager of the Bank Verification Number (BVN) database.
In his ruling, Justice James Omotosho declared that NIBSS’s role is consistent with the Central Bank of Nigeria (CBN) Act and other applicable financial regulations. The court found that its operations do not infringe on Nigerians’ constitutional right to privacy.
The case was brought by NIBSS, represented by Senior Advocate of Nigeria (SAN) Wolemi Esan, against the Incorporated Trustees of Digital Rights Lawyers Initiative, the Central Bank of Nigeria, and the Attorney General of the Federation, listed as first to third defendants.
NIBSS had sought a declaration affirming that its management of BVN data is lawful and does not violate any existing rights or legislation. The company also requested a perpetual injunction to prevent any person or organization, including the Digital Rights Lawyers Initiative, from challenging its authority over the BVN system.
NIBSS argued that it is mandated to develop and regulate national infrastructure for electronic payments and fund transfers, and that the BVN falls within this responsibility. It accused the Digital Rights Lawyers Initiative of repeatedly attempting to undermine its statutory role through legal actions.
Supporting NIBSS’s position, Kofo Abdulsalam-Alada, counsel for the CBN, filed a counter-affidavit asserting that NIBSS’s management of the BVN database is lawful, constitutionally grounded, and vital to the security and integrity of the financial system. He cited Section 47(2) of the CBN Act (2007) and relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In his judgment, Justice Omotosho ruled that the BVN initiative does not violate privacy rights and that NIBSS is lawfully empowered to manage the system. “NIBSS has the power to manage the BVN. The court grants the reliefs of NIBSS as prayed,” he said.
The judge also issued a perpetual injunction restraining the Digital Rights Lawyers Initiative and any other parties from contesting NIBSS’s authority to manage the BVN. He concluded that the ruling constitutes a judgment in rem, meaning it is binding on all individuals and entities unless overturned on appeal.
