Justice James Omotosho of the Federal High Court in Abuja has scheduled July 4 as the date to deliver judgment on the legitimacy of the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) authority to oversee the Bank Verification Number (BVN) database.
This system is reportedly managed in accordance with provisions of the Central Bank of Nigeria (CBN) Act and other applicable financial regulations.
The decision to fix the judgment date came after both parties’ legal representatives of NIBSS and the Central Bank of Nigeria—made their arguments in court. Representing NIBSS was Babatunde Ige, while Kofo Abdulsalam-Alada appeared on behalf of the CBN.
During the hearing, Ige asked the court to uphold the reliefs being sought by NIBSS. He argued that the institution’s role in administering the BVN database is not only backed by statute but also vital for preserving the security and stability of the country’s financial ecosystem.
Ige referenced relevant sections of the CBN Act of 2007 as well as the Banks and Other Financial Institutions Act of 2020 to justify NIBSS’ operations. According to him, the Central Bank derives its authority to supervise payment and settlement systems from these legislative instruments.
He further emphasized that under Section 47(2) of the CBN Act, the apex bank is empowered to foster payment infrastructures across Nigeria. He explained that in pursuit of this objective, the CBN was instrumental in the establishment of NIBSS along with other banks. Ige underscored the institution’s mandate to ensure the integrity of depositors’ funds and argued that the implementation of the BVN initiative was aligned with the goal of promoting a sound and reliable financial system.
Ige concluded his presentation by urging the court to consider the critical role the BVN framework plays and the importance of NIBSS’ involvement in its execution, stating that the plaintiff is properly positioned to manage the BVN system.
Following the submissions, Justice Omotosho declared that the final ruling on the matter would be delivered on July 4. The plaintiff, NIBSS, filed the suit against the Incorporated Trustees of Digital Rights Lawyers Initiative, the Central Bank of Nigeria, and the Attorney General of the Federation, who are listed as the first through third defendants respectively. The organization is requesting the court to bar any individual, organization, or institution from disputing its legal mandate to manage and operate the BVN database.
In the legal reliefs it is seeking, NIBSS is asking the court to recognize its role in managing the BVN database as authorized by existing laws, including the CBN Act, the BOFIA 2020, and the Revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry issued in 2021. It also wants a declaration that its handling of BVN data does not infringe on any constitutional privacy rights of Nigerian citizens or violate any current legislation.
Additionally, NIBSS is seeking a perpetual injunction that would prevent the Digital Rights Lawyers Initiative and any other parties, whether directly or through representatives, agents, or affiliates, from mounting any legal or institutional challenge to its oversight of the BVN database.
The organization further accused the Digital Rights Lawyers Initiative of launching multiple legal actions—both independently and through proxies—disputing NIBSS’ authority over the BVN system and alleging violations of constitutional privacy protections.
Justice Omotosho will deliver his ruling on the matter on July 4.
What you should know
The outcome of the court ruling on July 4 could set a significant precedent on data governance within Nigeria’s financial sector.
If the court upholds NIBSS’ position, it will reaffirm the organization’s authority over the BVN system, while a contrary decision may spark fresh debates on privacy, data protection, and regulatory oversight.
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