Justice James Omotosho of the Federal High Court, Abuja, has set 4 July as the date for judgement on the legality of the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) management of the Bank Verification Number (BVN) database, said to be in line with the Central Bank of Nigeria (CBN) Act and other banking laws.
The judge announced the date after hearing from legal representatives of both NIBSS and the Central Bank of Nigeria—Messrs Babatunde Ige and Kofo Abdulsalam-Alada.
During the proceedings, counsel to NIBSS, Mr Ige, urged the court to uphold the reliefs sought by his client. In his filings, he argued that NIBSS’ role in managing the BVN database is legally mandated, constitutionally sound, and vital for the security and stability of Nigeria’s financial system.
He submitted that the CBN derives its authority to issue directives on the BVN from the Central Bank of Nigeria Act 2007 and the Banks and Other Financial Institutions Act 2020.
Ige stressed that Section 47(2) of the CBN Act empowers the apex bank to develop payment and settlement systems in Nigeria. He noted that NIBSS was created in collaboration with Nigerian banks as part of this mandate.
According to him, the BVN initiative promotes a secure and robust financial system, ensuring the safety of deposits held by Nigerians and foreign customers alike.
He concluded by urging the court to recognise the significance of the BVN system and affirm NIBSS’ authority to maintain and manage the database.
Justice Omotosho reserved judgement after hearing all submissions.
In its originating summons, NIBSS joined the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation (AGF) as first to third defendants. NIBSS is seeking a restraining order preventing any party from challenging its statutory mandate to manage the BVN database.
Reliefs Sought by NIBSS include:
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A declaration that NIBSS is legally empowered to maintain the BVN database under the CBN Act 2007, the BOFIA Act 2020, and the 2021 Revised Regulatory Framework for BVN Operations.
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A declaration that maintaining the BVN data of Nigerians does not breach constitutional privacy rights or any existing laws.
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A perpetual injunction preventing the Digital Rights Lawyers Initiative and any related entities or individuals from contesting NIBSS’ authority over the BVN database.
NIBSS also accused the Digital Rights Lawyers Initiative of filing multiple suits—either directly or through proxies—disputing its authority and alleging privacy violations in the BVN system’s management.