The Federal High Court in Lagos has dismissed a lawsuit challenging the Central Bank of Nigeria’s (CBN) regulation requiring banks to collect customers’ social media handles as part of their Know-Your-Customer (KYC) process. The ruling upholds Section 6(a)(iv) of the CBN Customer Due Diligence Regulations 2023.
The suit was filed by Lagos-based lawyer Chris Eke, who argued that the regulation violated Section 37 of the 1999 Constitution, which protects the privacy of citizens. Eke sought a declaration that the regulation was unconstitutional.
In response, the CBN urged the court to dismiss the application, arguing that it was incompetent. Justice Nnamdi Dimgba, presiding over the case, ruled in favor of the CBN on Wednesday.
Justice Dimgba stated, “The said Regulations are directed to and apply to financial institutions. It does not apply to private individuals such as the Applicant.” He further noted that Eke did not provide evidence that any financial institution had implemented the regulation in a manner that caused disruptions or inconveniences to the general public.
The judge asserted that requiring a social media handle as part of the KYC process does not constitute a breach of privacy. He explained, “I do not see how asking a banking or potential banking customer to provide his social media handle can ever amount to a breach of privacy.”
Justice Dimgba referenced Section 37 of the Constitution, which guarantees the privacy of citizens’ homes, correspondence, telephone conversations, and telegraphic communications. He likened the provision of a social media handle to the provision of an email address or phone number, arguing that these forms of communication should be afforded similar privacy protections under the law.
This ruling suggests that the constitution’s privacy guarantees can evolve to include new forms of communication technology, reflecting the changing nature of how people interact and share personal information.
The court’s decision highlights the CBN’s authority to mandate social media handle collection as part of financial institutions’ KYC procedures, reinforcing the central bank’s regulatory framework aimed at enhancing customer due diligence and security measures in the financial sector.