The Lagos Federal High Court has ruled in favor of the Central Bank of Nigeria (CBN) regarding a regulation that requires financial institutions to obtain customers’ social media handles as part of the know-your-customer procedure. The court struck out a lawsuit filed by Chris Eke, a Lagos-based lawyer, who argued that the regulation was undemocratic, unconstitutional, and a breach of privacy.
Presiding Judge Nnamdi Dimgba stated that social media handles are communication channels like emails and phone numbers, and financial institutions may need them to determine whether to do business with a potential customer. The judge ruled that the regulation does not apply to individual applicants, but rather to financial institutions, and individuals can choose not to do business with institutions that require social media handles.
The CBN had argued that the regulation does not violate customers’ privacy, and the court agreed, stating that providing a social media handle is similar to providing an email address or phone number. The court also noted that social media accounts are publicly visible, and it would be unreasonable to consider requesting a social media handle a breach of privacy.
This ruling upholds the CBN’s regulation, which was introduced in June, despite the House of Representatives’ order to halt its implementation in July. The regulation aims to enhance customer due diligence and prevent financial crimes.
