Abuja: fixed July 4 for judgment in the suit filed by the Nigeria Inter-Bank Settlement System (NIBSS) Plc against the Central Bank of Nigeria (CBN) and others. NIBSS is seeking an order to prevent any institution from challenging its statutory authority to maintain and manage the Bank Verification Number (BVN) database in Nigeria.
According to News Agency of Nigeria, Justice James Omotosho set the judgment date after the lawyers representing NIBSS, Babatunde Ige, and CBN's counsel, Kofo Abdulsalam-Alada, presented their arguments. NIBSS, through its lawyer, Ademolai Esan, SAN, initiated the suit against the Incorporated Trustees of Digital Rights Lawyers Initiative (ITDRLI), the CBN, and the Attorney-General of the Federation (AGF) as the 1st to 3rd defendants, respectively.
NIBSS seeks a declaration that it is statutorily empowered to manage the BVN database as per the Central Bank Act 2007, the Banks and Other Financial Institutions Act 2020, and the Revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021. NIBSS claims its statutory authorization allows it to manage the BVN database seamlessly.
The organization accused ITDRLI of filing multiple lawsuits challenging its management of the BVN database and alleging violations of constitutional privacy rights. ITDRLI denied these allegations, urging the court to dismiss the suit.
NAN reports that Justice Omotosho had previously dismissed a motion filed by the Incorporated Trustees of Data Privacy Lawyers Association (DPLAN) as 'unmeritorious.' During the recent hearing, no legal representatives appeared for ITDRLI and AGF, despite being served with hearing notices.
NIBSS' counsel, Ige, requested a favorable judgment for his client, while the CBN's lead counsel, Abdulsalam-Alada, argued that the management of the BVN database is legally authorized and crucial for Nigeria's financial stability. He emphasized that the BVN initiative does not infringe on privacy rights but enhances financial security.
Abdulsalam-Alada highlighted the CBN's power to issue directives on BVN development under the CBN Act of 2007 and the Banks and Other Financial Institutions Act of 2020. He noted that NIBSS was established alongside other Nigerian banks, with the CBN promoting a sound financial system in Nigeria.
The lawyer urged the court to recognize the BVN framework's importance and NIBSS' role in maintaining the database, emphasizing financial security for bank customers. After hearing the arguments, Justice Omotosho adjourned the case until July 4 for judgment.
NAN reports that a BVN is a unique identifier used to verify individual accounts across Nigerian banks, issued to every bank customer at enrolment and linked to all their bank accounts.