A recent ruling from the Federal High Court in Lagos sheds light on an important matter concerning the privacy of bank customers.
The court, presided over by Justice Nnamdi Dimgba, addressed a lawsuit brought forth by a Lagos-based lawyer, Chris Eke, challenging a regulation by the Central Bank of Nigeria (CBN).
This regulation, outlined in Section 6(a)(iv) of the CBN’s Customer Due Diligence Regulations, 2023, mandates financial institutions to collect customers’ social media handles as part of their Know-Your-Customer (KYC) procedure.
Eke argued that this requirement infringed upon the constitutional right to privacy, as guaranteed by Section 37 of the 1999 Constitution of Nigeria. However, Justice Dimgba disagreed, ultimately striking out the suit after considering the arguments presented.
In his judgment, Justice Dimgba emphasized that providing a social media handle is akin to providing an email address or phone number for contact purposes. He reasoned that since social media accounts are often used for public communication, requesting this information does not violate privacy rights.
Additionally, the judge highlighted that similar personal information is commonly requested in various business applications, further supporting the notion that it does not constitute a breach of privacy.
The judge also addressed concerns about potential monitoring of social interactions, deeming them speculative and unlikely given the practical constraints faced by financial institutions.
Ultimately, Justice Dimgba upheld the preliminary objection raised by the CBN and struck out the suit, opting not to award costs.
This ruling clarifies the legality of the CBN regulation and provides insight into the court’s interpretation of privacy rights in the digital age.
It underscores the importance of balancing privacy concerns with the need for effective banking regulations, while also highlighting the evolving nature of privacy rights in an increasingly interconnected world.
