Nigerian Banks Set to Collect Customers’ Social Media Handles Following Court Ruling

The Federal High Court in Lagos has upheld a rule by the Central Bank of Nigeria (CBN) that requires banks to collect and verify customers’ social media handles as part of the 

Know-Your-Customer (KYC) process. Justice Nnamdi Dimgba ruled that asking for social media handles does not violate privacy rights.

This decision came after Lagos-based lawyer Chris Eke filed a lawsuit against the CBN. Eke argued that the regulation was undemocratic, unconstitutional, and violated the 1999 Constitution. He sought a court order to stop the CBN from enforcing the rule. 

The CBN defended the regulation, stating it helps combat financial crimes and terrorism by improving customer identification. Section 6 (IV) of the CBN’s 2023 regulations requires banks to collect and verify social media handles to enhance the accuracy of customer identification.

Justice Dimgba found Eke’s claims of privacy violation to be unfounded. He noted that the regulation targets financial institutions, not private individuals like Eke. Additionally, Eke did not prove he had a bank account or was asked for his social media handle, making his claim speculative.

The judge also pointed out that there was no evidence of banks implementing the regulation in a way that caused public disruption, which would have justified a public interest case. He stated that providing a social media handle is similar to providing an email address or phone number, and dismissed the lawsuit.

In summary, the court ruled that the CBN’s requirement for social media handles as part of KYC does not breach privacy and is aimed at enhancing financial security.