A Federal High Court in Abuja has ruled that the Nigeria Inter-Bank Settlement System Plc (NIBSS) has the full legal right to manage the Bank Verification Number (BVN) system in Nigeria.
In his judgment, Justice James Omotosho said that NIBSS’s role is in line with the Central Bank of Nigeria (CBN) Act and other financial rules. The judge added that managing the BVN database does not break Nigerians’ right to privacy.
The case was taken to court by NIBSS, which was represented by Senior Advocate of Nigeria (SAN) Wolemi Esan. The defendants in the case were the Incorporated Trustees of Digital Rights Lawyers Initiative, the Central Bank of Nigeria, and the Attorney General of the Federation.
NIBSS told the court it wanted a clear judgment showing that managing BVN data is legal and does not break any Nigerian laws. The company also asked the court to stop any person or group—including the Digital Rights Lawyers Initiative—from questioning its authority over the BVN system in the future.
NIBSS explained that it has been given the job of developing and regulating Nigeria’s electronic payment systems, which includes the BVN. It said the Digital Rights Lawyers Initiative had made several attempts to challenge its role through legal action.
The Central Bank of Nigeria also stood in support of NIBSS. The CBN’s lawyer, Kofo Abdulsalam-Alada, said in a sworn statement that NIBSS’s work is legal, follows the Constitution, and is important for Nigeria’s financial safety. He pointed to Section 47(2) of the CBN Act (2007) and the Banks and Other Financial Institutions Act (BOFIA) 2020.
Justice Omotosho ruled in favor of NIBSS, saying that handling BVN information does not violate any privacy laws. He said NIBSS has the authority to manage the BVN system and gave them all the legal relief they requested.
The judge also issued a “perpetual injunction,” which means no one, including the Digital Rights Lawyers Initiative, can challenge NIBSS’s right to manage the BVN system in court again. The judge said the ruling is a “judgment in rem,” meaning it applies to everyone and can only be changed by a higher court.
