A Federal High Court in Abuja has ruled in favor of the Nigeria Inter-Bank Settlement System Plc (NIBSS), confirming its legal authority to manage the Bank Verification Number (BVN) database across the country.
The court held that NIBSS’s role in overseeing the BVN system is backed by the Central Bank of Nigeria (CBN) Act and other applicable banking laws. The judgment reaffirmed that the management of the BVN database does not violate the constitutional right to privacy and is essential for ensuring the stability of Nigeria’s financial ecosystem.
In a judgment delivered by Justice James Omotosho, the court declared that NIBSS is lawfully empowered to maintain the BVN and that such activity falls within the regulatory framework provided by the Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020.
The judge emphasized that the BVN system serves a vital public interest and does not infringe upon individual privacy rights. The ruling dismissed previous objections raised by various groups, noting that NIBSS’s mandate to manage the database is both constitutional and statutory.
The court also issued a perpetual injunction restraining any individual, group, or institution from challenging NIBSS’s authority to oversee the BVN database, effectively reinforcing the role of the company in securing and streamlining Nigeria’s financial identity system.
This decision is expected to strengthen regulatory efforts aimed at combating financial fraud and enhancing transparency within the banking sector.
