The Federal High Court in Abuja has upheld the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) authority over the management of BVN. The ruling now restrains any Nigerian institution from challenging NIBSS’s authority to maintain and manage the Bank Verification Number (BVN) database.
According to a Friday court ruling presided over by Justice James Omotosho in a case filed by NIBSS lead counsel, Wolemi Esan, SAN, involving the Central Bank of Nigeria (CBN) lead counsel, Kofo Abdulsalam-Alada, and others, the Judge ruled that NIBSS has the authority to manage BVN, citing the CBN Act and other relevant banking laws.
Recently, the Digital Rights Lawyers Initiative has been challenging NIBSS’s authority over the BVN database, alleging that such management violates constitutional privacy rights. NIBSS, supported by the Apex Bank, maintains its statutory authority to manage the BVN database and has been seeking a court order to prevent further challenges.
NIBSS had also accused the Digital Rights Lawyers Initiative of filing multiple suits that directly or indirectly challenged its authority to manage the BVN database.
According to Esan, NIBSS plays a crucial role in Nigeria’s financial ecosystem by facilitating electronic payments, fund transfers, and settlement of transactions between financial institutions. It also has the authority to operate the Nigeria Central Switch, ensuring coordination between banks and other payment service providers, and managing the BVN system.
The senior lawyer thereby requested the court to declare that the NIBSS maintenance and management of the BVN data of Nigerians does not violate their constitutional right to privacy or any extant laws in force in Nigeria.
“An order of perpetual injunction restraining the 1st Defendant (Digital Rights Lawyers Initiative), and any other entity, person, or institution whether directly or through agents, officers, employees, privies, or any person acting under their instruction or control from contesting the plaintiff’s statutory authority to maintain and manage the BVN database,” the reliefs partly read, as cited by Nairametrics.
In addition, the CBN lead counsel referenced his counter-affidavit filed on February 11, 2025. According to him, NIBSS holds a rightful claim to manage the BVN database, and its statutory authority is constitutionally justified. He noted that such is essential for maintaining the stability and security of Nigeria’s financial system.
“The initiative does not infringe on the constitutional right to privacy but rather serves as a necessary tool for safeguarding public interest and enhancing financial security,” he added.
Abdulsalam-Alada noted that the CBN’s power to issue directives regarding BVN development is legally backed by the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020. He explained that the apex bank has the power under Section 47(2) of the CBN Act to develop payment and settlement systems in Nigeria.
Final Verdict on NIBSS Authority Over BVN
While delivering his judgment on Friday, Justice Omotosho upheld the powers of the CBN to make financial regulations, also established in the BOFIA 2020. The judge affirmed that NIBSS is empowered by law to maintain the BVN, and also declared that NIBSS’s management of the BVN does not violate privacy rights in Nigeria.
“NIBSS has the power to manage the BVN. The court grants the reliefs of NIBSS as prayed,” the judge said, citing relevant CBN laws.
Furthermore, Judge Omotosho restrained the Digital Rights Lawyers Initiative and any other entity, individual, or organisation from challenging NIBSS’s management of the system in the future.
Bank Verification Number is an 11-digit unique identification number issued to bank customers by the CBN to verify their identity across all banks. This system aims to enhance security, reduce fraud, and streamline banking operations, and can also be used to authenticate transactions and verify customer identity at any point of banking operations.
