The Federal High Court in Lagos has upheld a regulation by the Central Bank of Nigeria (CBN) mandating financial institutions to collect customers’ social media handles as part of their Know-Your-Customer (KYC) procedures.
Justice Nnamdi Dimgba dismissed a suit by lawyer Chris Eke, who argued that this regulation infringes on privacy rights as guaranteed by Section 37 of the 1999 Constitution of Nigeria. Eke had sought to have the regulation declared unconstitutional and void, and requested a perpetual injunction to prevent its enforcement.
The CBN defended the regulation, asserting that it did not violate privacy rights and was essential for effective customer due diligence. In his ruling, Justice Dimgba agreed with the CBN, stating that requiring social media handles is akin to asking for email addresses or phone numbers, which are standard practices for maintaining contact and conducting due diligence. The judge emphasized that the regulation was not an overreach into personal privacy.
Justice Dimgba further argued that the claim of privacy violation was unfounded since social media handles are inherently public information. He pointed out that the essence of having a social media account is for public visibility, thus collecting this information does not constitute a breach of privacy. He also noted that the regulation applies to financial institutions and not private individuals directly, rendering the applicant’s concerns speculative.
The judge concluded that if the applicant found the regulation burdensome, he could choose not to engage with banks that enforce it. Ultimately, the court found no evidence of the regulation causing disruptions or inconveniences, and thus upheld the CBN’s regulation, striking out the suit without awarding any costs.
