The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) for including unlawful provisions in its regulations that require banks to collect information about customers’ social media accounts for identification purposes.
Last month, the apex bank issued a circular directing banks and financial institutions to enforce the mandatory provisions concerning customers’ social media handles as part of their Customer Due Diligence procedures.
In the lawsuit, filed as case number FHC/L/CS/1410/2023 at the Federal High Court in Lagos last Friday, SERAP seeks a court order, known as “mandamus,” to compel the CBN to withdraw its directive from June 20, 2023, that requires banks to gather customers’ social media information. Additionally, SERAP requests the removal of the unlawful provisions in Section 6 of the Customer Due Diligence Regulations, 2023, which the organization deems inconsistent with Section 39 of the Nigerian Constitution 1999 (as amended) and Article 9 of the African Charter on Human and Peoples’ Rights.
SERAP also urges the court to prevent the CBN from implementing the contentious provisions of Section 6 that compel banks and financial institutions to collect information from customers social media accounts.
The main argument put forth by SERAP is that the mandatory requirement for social media handles or addresses does not serve any legitimate purpose and could potentially be exploited to violate individuals’ freedom of expression and privacy rights. The organization contends that existing identification methods such as passports, driver’s licenses, Bank Verification Numbers (BVN), and Tax Identification Numbers (TIN) already suffice for banks and financial institutions to know their customers, rendering the social media requirement unnecessary and intrusive.
According to SERAP, obtaining personal information from customers’ social media accounts goes beyond what is necessary for identification purposes and could infringe on constitutionally protected rights to freedom of expression and privacy, as guaranteed in Section 39 and Section 37 of the Nigerian Constitution, respectively.
By seeking legal remedies through this lawsuit, SERAP aims to prevent the CBN from enforcing the directive, which it believes would violate citizens’ rights and create potential overreach and excessive discretion on the part of banks and financial institutions.
The case has been represented in court by SERAP’s lawyers, Kolawole Oluwadare and Ms Blessing Ogwuche, who argue that obtaining social media information for identification purposes is disproportionately invasive, given the existing means of identification available. By asserting the protection of freedom of expression and privacy rights under the Nigerian Constitution, SERAP aims to challenge the CBN’s directive and safeguard citizens’ fundamental rights.
