The Federal High Court in Abuja has officially scheduled July 4 as the date for its ruling in the legal contest initiated by the Nigeria Inter-Bank Settlement System (NIBSS) Plc against the Central Bank of Nigeria (CBN) and other involved parties, concerning the control and statutory authority over the management of Nigeria’s Bank Verification Number (BVN) database.
At the latest hearing, presiding Judge, Justice James Omotosho, fixed the date for the judgment after both sides—represented by Babatunde Ige for NIBSS and Kofo Abdulsalam-Alada for the CBN—adopted their legal briefs and presented oral arguments.
NIBSS, represented by Senior Advocate of Nigeria (SAN), Ademolai Esan, initiated the legal action against the Incorporated Trustees of Digital Rights Lawyers Initiative (ITDRLI), the CBN, and the Attorney-General of the Federation (AGF), listed as the first to third defendants respectively. The plaintiff is seeking judicial affirmation of its exclusive statutory mandate to manage and maintain the BVN database.
According to NIBSS, its authority to oversee the BVN system is derived from several key regulatory frameworks, including the Central Bank Act of 2007, the Banks and Other Financial Institutions Act (BOFIA) 2020, and the Revised Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry (2021).
NIBSS stated, “Under the said regulatory framework, NIBSS is a designated participant in BVN operations and has the legal mandate to manage and ensure the seamless functionality of the BVN database.”
The organization also alleged that ITDRLI, either acting independently or through affiliates, had instituted multiple legal challenges aimed at undermining NIBSS’s authority by citing violations of constitutional privacy protections.
ITDRLI, however, has rejected these accusations in its defense filings, urging the court to dismiss the claims brought by NIBSS. Meanwhile, a previous motion filed by the Incorporated Trustees of Data Privacy Lawyers Association (DPLAN) to join the suit was struck out by the court on May 19, with Justice Omotosho labeling the request as “unmeritorious.”
During the Monday session, legal representatives for ITDRLI and the AGF were absent, despite being served with notices for the hearing. Consequently, NIBSS’s legal counsel, Ige, appealed to the court for a favorable ruling in his client’s favor.
On the other side, CBN’s legal team, led by Abdulsalam-Alada, referenced a counter affidavit filed on February 11. In his submission, the lawyer urged the court to validate the legitimacy of NIBSS’s BVN operations, emphasizing that the initiative aligns with constitutional standards and contributes to the resilience and integrity of Nigeria’s financial ecosystem.
“The BVN system does not contravene privacy rights as claimed but is a strategic instrument necessary for protecting the public interest and strengthening financial security,” said Abdulsalam-Alada.
He argued that the CBN, under Section 47(2) of the CBN Act 2007 and BOFIA 2020, possesses the authority to regulate and develop payment systems in Nigeria. “It is under this authority that NIBSS was established to operate alongside all other licensed banks in Nigeria,” he explained.
The lawyer further emphasized that the CBN Act mandates the apex bank to ensure the soundness of the financial system. “The introduction and implementation of the BVN was in line with this statutory responsibility. It is a critical safeguard for protecting the savings of both Nigerian citizens and foreigners banking within Nigeria,” he noted.
In closing, Abdulsalam-Alada urged the court to recognize the operational importance of the BVN structure and NIBSS’s central role in its administration, asserting that the institution has the lawful right to manage the database.
After concluding arguments from the parties present, Justice Omotosho deferred final judgment until July 4.
The BVN, a biometric identification system unique to each banking customer, serves as a key instrument for verifying individual account ownership across all banks in Nigeria. It is issued at the point of enrollment and linked to every bank account operated by the customer within the country.
