In a landmark ruling on Friday, Nigeria’s Federal High Court in Abuja upheld the Nigeria Inter-Bank Settlement System (NIBSS) as the legally recognized manager of the Bank Verification Number (BVN) database.
Justice James Omotosho delivered the judgment, reinforcing NIBSS’s mandate under the Central Bank of Nigeria (CBN) Act and other banking regulations.
The case arose after NIBSS, represented by Senior Advocate of Nigeria Wolemi Esan, alongside CBN’s lead counsel Kofo Abdulsalam-Alada, sought judicial protection against challenges to its statutory role in maintaining the BVN system.
The legal action followed claims by the Digital Rights Lawyers Initiative, which had filed multiple lawsuits—directly and through proxies—arguing that NIBSS’s management of the BVN violated constitutional privacy rights.
In his ruling, Justice Omotosho dismissed these privacy concerns, stating that the BVN system does not infringe on citizens’ rights but instead strengthens public interest and financial security.
“The initiative serves as a necessary tool for safeguarding public interest and enhancing financial security,” the judge clarified.
He further emphasised that NIBSS operates within the legal framework established by the CBN, affirming, “NIBSS has the power to manage the BVN.”
The court granted all reliefs sought by NIBSS, effectively barring any institution from contesting its authority over the BVN database. The judgment provides legal certainty for the biometric system, which has enrolled over 59 million Nigerians since its 2014 launch to combat fraud and streamline banking operations.
Financial and legal experts have hailed the decision as a victory for Nigeria’s banking sector stability. The CBN, in a statement, reiterated its commitment to data protection while underscoring the BVN’s role in modernising the financial system. With this ruling, NIBSS can now focus on optimising the database without legal ambiguities, reinforcing its critical function in Nigeria’s economic infrastructure.
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cc: Daily Post Ng
