A Lagos federal high court judge has dismissed a lawsuit challenging a Central Bank of Nigeria (CBN) regulation requiring financial institutions to collect social media handles from customers as part of know-your-customer (KYC) procedures.
Judge Nnamdi Dimgba ruled in favor of the CBN, stating that collecting social media handles is no different from collecting email addresses or phone numbers, all of which are communication channels that can be used for customer identification. Dimgba argued that the practice does not infringe on customer privacy.
“My view is that the provision of a social media handle is of the same genre as the provision of email address, phone numbers and other means by which a potential customer of a bank can be contacted.”
“I do not see how this infringes on the right to privacy. I should even say that the essence of having a social media account was for one to be publicly visible communication-wise.”
The lawsuit, filed by Lagos lawyer Chris Eke, sought to declare the regulation unconstitutional and a violation of privacy rights. Eke argued that the regulation contradicted a section of the Nigerian constitution. He requested a court order preventing the CBN from mandating social media handle collection by financial institutions.
The CBN, however, defended the regulation, claiming it did not violate privacy. The court ultimately agreed with the CBN’s argument and dismissed the case. Dimgba further clarified that the regulation targeted financial institutions, not individual applicants. He added that individuals have the option to not do business with institutions that require social media handles.
This decision comes after the CBN issued the regulation in June 2023, requiring financial institutions to collect social media information for customer identification. The House of Representatives subsequently requested the CBN to halt the implementation, citing concerns about its necessity and potential burdens on Nigerians.
