The Central Bank of Nigeria is being sued by the Socio-Economic Rights and Accountability Project over its proposed Know-Your-Customer social media policy.
SERAP’s attorneys, Mr. Kolawole Oluwadare and Ms. Blessing Ogwuche filed the lawsuit on behalf of the organization, alleging “the failure to delete the patently unlawful provisions in the Central Bank of Nigeria (Customer Due Diligence) Regulations directing banks to obtain information on customers’ social media handles for the purpose of identification.”
The CBN issued a circular last month ordering banks and other financial institutions to put the necessary clauses on customers’ social media names in the CBN Regulations into practice and comply with them. Nigerians and government organizations both voiced reservations over this.
In the lawsuit FHC/L/CS/1410/2023, which was filed last Friday at the Federal High Court in Lagos, SERAP is requesting “an order of mandamus to direct and compel the Central Bank of Nigeria to withdraw its directive dated 20th June 2023 to banks and other financial institutions to obtain information from customers’ social media handles.”
Through the lawsuit, SERAP is requesting additional relief, including “an order of mandamus to compel the CBN to delete the unlawful provisions of Section 6 of its Customer Due Diligence Regulations, 2023 for being inconsistent with Section 39 of the Nigerian Constitution 1999 [as amended] and Article 9 of the African Charter on Human and Peoples’ Rights.”
Another request made by SERAP is for “an order restraining the CBN from carrying out or giving effect to the unlawful provisions of Section 6 of its Customer Due Diligence Regulations, 2023, directing banks and other financial institutions to obtain information from customers’ social media handles.”
“The mandatory requirement of social media handles or addresses of customers does not serve any legitimate aim,” claims SERAP in the lawsuit. The rights to privacy and freedom of expression may be arbitrarily or unjustifiably restricted using such information.
In addition, SERAP claims that “the CBN will implement and enforce the unlawful directive in violation of citizens’ rights to freedom of expression and privacy” unless the reliefs requested are granted.
“It is more intrusive than necessary to obtain information on customers’ social media handles or addresses as a means of identification.”
Banks and other financial institutions “shall identify their customer and obtain information on the customer’s social media handle,” according to Section 6(a)(iv) of the CBN Regulations. Similar language is included in Section 6(b)(iii).
It stated that the alleged restriction will prevent Nigerians from enjoying their human rights online in a free and independent manner. “If collected, this information might also be utilized illegally for political or other reasons.
“The CBN Regulations and direction to banks and other financial institutions would impermissibly restrict the constitutional and international rights to freedom of expression, privacy, and the right of victims to equitable and efficient remedies.
“The effective exercise of Nigerians’ rights to free expression and online privacy would be significantly hampered by the requirement for social media handles or customer addresses as a form of identification.”
“The CBN Regulation does not indicate how the use of a social media handle or address as a means of identification will serve to enhance banks’ and other financial institution’s capacity to conduct and adhere to the rules relating to client due diligence.
“Getting access to a customer’s social media names or addresses would violate their rights to free speech and privacy. It would also be out of proportion to any ostensibly acceptable goal that the CBN aspires to.”
