Court Upholds CBN’s Directive, Orders Banks To Collect Customer’s Social Media Handles

Court Upholds CBN’s Directive, Orders Banks To Collect Customer’s Social Media Handles

Justice Nnamdi Dimgba of the Federal High Court, Lagos, has upheld a recent Central Bank of Nigeria (CBN) regulation mandating financial institutions to acquire and record the social media handles of their clients as part of the standard Know-Your-Customer procedure…..read also Just In: CBN Governor Signals Continuation Of High Interest Rates Until Inflation Subsides (Details)

In a judgment delivered on Wednesday, May 15, Justice Dimgba emphasized that the regulation does not violate the privacy rights of bank customers.

The ruling came in response to a lawsuit filed by Chris Eke, a lawyer based in Lagos, challenging the validity of the regulation outlined in Section 6(a)(iv) of the Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023.

Eke, represented by his lawyer Olubunmi Abayomi-Olukunle, argued in July 2023 that the new CBN regulation contradicts the Nigerian Constitution, particularly Section 37.

Seeking a perpetual injunction against the enforcement of the regulation, Eke contended that it was undemocratic and unconstitutional.

The CBN, in its defense, filed a preliminary objection, contesting the jurisdiction of the court and disputing any infringement on the privacy of the applicant.

Justice Dimgba, in his ruling, found merit in the preliminary objection and dismissed the suit.

He likened the requirement of social media handles to the standard practice of collecting email addresses and phone numbers for customer due diligence, stating that it facilitates communication and assessment of a customer’s suitability for banking services.

According to Justice Dimgba, the essence of having a social media account is public visibility in communication, thus negating any claims of privacy infringement by the CBN.

The ruling sets a precedent endorsing the CBN’s directive and obliges banks to comply with the regulation mandating the collection of customers’ social media handles as part of routine due diligence.