Court hears NIBSS suit seeking exclusive power to manage BVN database

The Federal High Court in Abuja on Monday fixed 26 May to hear a suit filed by the Nigeria Inter-Bank Settlement System (NIBSS) Plc against the Central Bank of Nigeria (CBN) and others.

NIBSS, in the suit, is seeking an order to prevent any institution from challenging its statutory authority to maintain and manage the Bank Verification Number (BVN) database in Nigeria.

Judge James Omotosho fixed the date after dismissing an application for joinder filed by Data Privacy Lawyers Association (DPLAN).

The News Agency of Nigeria (NAN) reports that NIBSS, through its lawyer, Ademolai Esan, a Senior Advocate of Nigeria (SAN), had sued the Digital Rights Lawyers Initiative (ITDRLI), the CBN and the Attorney-General of the Federation (AGF), seeking the court’s declaration that it is the body statutorily empowered to maintain and manage the BVN database.

The BVN is an identification number which holds an individual’s bank account details. The number is also connected to an individual’s National Identification Number (NIN).

Both the BVN and the NIN are key identity numbers that hold sensitive biometric imprints virtually all important personal information of millions of Nigerians.

With the diverse uses of digital platforms for daily routines such as banking and accessing the internet as well as well registration for various government and many private bodies’ services, including acquiring a passport or a SIM card, it is increasingly difficult to live in Nigeria without NIN.

No one can legitimately operate a bank account in Nigerian without BVN, and by extension NIN. You cannot also use a mobile phone without having NIN.

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The dispute over the control and management of the BVN raises data privacy and surveillance concerns.

It its efforts to gain sole control and management of Nigeria’s BVN database, NIBSS said its demand is pursuant to the Central Bank Act 2007, the Banks and Other Financial Institutions Act 2020, and the Revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021.

“Pursuant to the provisions of the framework, NIBSS, as a designated participant in BVN operations, is statutorily authorised to manage and maintain the BVN database and ensure its seamless operation, among other functions,” it added.
It, therefore, accused ITDRLI (1st defendant) of filing multiple suits, either directly or through proxies, challenging its authority to manage the BVN database and alleging that such management violates constitutional privacy rights.

However, ITDRLI denied the allegations in its court processes, asking the court to dismiss the suit.

Data privacy concerns

NAN reports that during the previous hearing session in April, Ayomide Ahmed, who appeared for the Data Privacy Lawyers Association (DPLAN), urged the court to join his client as defendant in the suit.

Mr Ahmed argued that the outcome of the case would impact the rights of his client and its members, especially regarding the BVN, in light of the relief sought by NIBSS to bar any institution from challenging its authority.

He stated that DPLAN is an association of experts in privacy and data protection, whose members are directly affected by the subject matter due to their objectives and ownership of bank accounts.

But counsel for the CBN, Abdulfatai Oyedele, prayed the court to dismiss DPLAN’s application for joinder.

Mr Oyedele argued that any party seeking to join a suit must attach a proposed defence.

He argued that DPLAN had failed to do so.

On his part, NIBSS’ lawyer, Mr Esan, also urged the court to discountenance DPLAN’s application.
The lawyer alleged that the chairman of the party seeking joinder was also the counsel for the 1st defendant and one of its trustees.
“What they do is to sue all over the country. The matter is never heard on its merits.

“They withdraw, and when the case is finally about to be heard, they bring an application to delay the hearing,” he said.
He urged the court not to waste judicial time and to dismiss the joinder application.

The judge, Mr Omotosho, while delivering the ruling on application for joinder on Monday, said the sole issue to determine was whether the plea for joinder by DPLAN was “meritorious.”

The judge held that only proper and necessary parties could be permitted by law to join a case.

“A necessary party is a party whose right will be affected by the order of a court,” he said.

He said that while it was clear that the suit by NIBSS sought judicial pronouncement regarding its BVN management, the issue could be determined by the court in the absence of DPLAN.

The judge further held that the party seeking to be joined cannot join the suit to protect the personal interests of its members, as this would imply that every Nigerian is a potential defendant in the suit.

He said that the presence of the AGF in the suit was sufficient to defend the BVN management suit on behalf of Nigerians.
“I cannot see how the interest of the applicant (DPLAN) will be jeopardised if it is not joined. This process is unnecessary,” the judge ruled.

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Mr Omotosho stated that the group’s motion for joinder had no basis in law.

The judge, who dismissed the motion, adjourned the matter until 26 May for the hearing of the substantive suit by NIBSS.

NAN reports that a BVN is a unique number that allows individual accounts to be verified across the Nigerian banking industry.

Besides, It is issued to every bank customer at enrollment and is linked to all of the customer’s bank accounts in the country.

(NAN)