The Federal High Court in Abuja has confirmed the authority of the Nigeria Inter-Bank Settlement System Plc (NIBSS) to manage the Bank Verification Number (BVN) database, restraining other Nigerian institutions from disputing this power.
Court Ruling on NIBSS Case
On Friday, Justice James Omotosho ruled that NIBSS has the authority to manage the BVN database. The court's decision, based on the Central Bank of Nigeria Act and other relevant banking laws, supported NIBSS's position in its case against the Central Bank of Nigeria (CBN).
Arguments from Both Sides
The Digital Rights Lawyers Initiative challenged NIBSS’s authority, alleging that its management of BVN violated constitutional privacy rights. However, NIBSS’s lawyer, Wolemi Esan, argued that the management does not infringe on citizens' privacy rights. The judge also noted that NIBSS operates in the public interest.
NIBSS's Role in Nigeria's Financial Sector
NIBSS plays a critical role in Nigeria's financial ecosystem by facilitating electronic payments and fund transfers between financial institutions. Moreover, NIBSS is authorized to operate the Nigeria Central Switch, coordinating banks and other payment service providers. The court also confirmed that the management of BVN does not infringe on privacy rights.
The court's ruling supports NIBSS's actions and underscores the stability of legal framework regarding the management of the BVN database, which is crucial for further development of Nigeria's financial system.
