Legal Victory for NIBSS: Court Rules on BVN Database Management

Eva Popov -

The Verdict Unveiled

In an unprecedented legal victory, the Nigeria Inter-Bank Settlement System Plc (NIBSS) secured its rightful position as the manager of the bank verification number (BVN) database, after a federal high court in Abuja ruled in its favor. Judge James Omotosho’s pronouncement aligned NIBSS’s operations with the Central Bank of Nigeria (CBN) Act, reinforcing their commitment to system security and stability in the electronic financial landscape.

Upholding the Right to Privacy

At the heart of this legal battle, NIBSS ardently sought affirmation that its activities do not violate constitutional privacy rights. The court’s judgment was clear: managing the BVN was within NIBSS’s legitimate purview, dispelling any privacy infringement claims. As stated in The Papers, this ruling solidifies their capability to maintain robust electronic payment infrastructures.

NIBSS faced continuous legal onslaughts, notably from the Digital Rights Lawyers Initiative, challenging their mandate. However, with Wolemi Esan, a senior advocate of Nigeria (SAN), in their corner, NIBSS fortified its stance against these repeated suits. The court’s perpetual injunction prohibits further contestations by such entities, shielding NIBSS’s statutory role.

Aligning with Financial Acts

The court ruling was buttressed by references to the CBN Act and the Banks and Other Financial Institutions Act (BOFIA) 2020, underscoring NIBSS’s lawful operations. Kofo Abdulsalam-Alada from the CBN emphasized that NIBSS’s role is essential for safeguarding Nigeria’s financial system, as reiterated during court proceedings.

Binding Judgment for Stability

Judge Omotosho’s decree, deemed a judgment in rem, binds all entities, beyond the immediate litigants. Through this ruling, NIBSS is empowered to continue steering Nigeria’s BVN initiatives with unequivocal legal support. This decisive victory underscores the judiciary’s role in solidifying the country’s financial integrity and technological advancement.