Court affirms NIBSS’s legal authority to manage BVN database

The Federal High Court in Abuja has affirmed the statutory authority of the Nigeria Inter-Bank Settlement System Plc (NIBSS) to manage and maintain the Bank Verification Number (BVN) database across Nigeria.

The court ruled that the operation of the BVN scheme by NIBSS does not violate any individual’s constitutional right to privacy and is fully backed by existing financial laws and regulations.

Delivering judgment on Friday, Justice James Omotosho upheld the reliefs sought by NIBSS in a suit filed to counter repeated legal challenges to its role in the BVN system.

The court ruled that NIBSS’s functions are authorized by the Central Bank of Nigeria (CBN) Act of 2007, the Banks and Other Financial Institutions Act (BOFIA) of 2020, and other related statutes governing Nigeria’s financial system.

NIBSS’s lead counsel, Senior Advocate of Nigeria (SAN) Wolemi Esan, initiated the legal action against the Incorporated Trustees of the Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation (AGF), who were listed as first to third defendants. Esan sought judicial clarification to prevent any institution from contesting NIBSS’s legal mandate to manage the BVN.

Specifically, NIBSS requested the court to declare that its BVN operations do not infringe on the privacy rights of Nigerians and to issue a perpetual injunction restraining the defendants or any third party from challenging its legal authority.

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Justice Omotosho agreed with the arguments presented, noting that NIBSS’s responsibilities are essential to Nigeria’s financial infrastructure. “NIBSS has the power to manage the BVN,” the judge declared, citing the CBN Act and BOFIA as legal foundations for its operations. “The court grants the reliefs of NIBSS as prayed.”

The judge further held that the BVN scheme does not constitute a breach of any citizen’s right to privacy and instead serves a legitimate and vital role in maintaining financial security and transparency in Nigeria.

Supporting NIBSS’s claims, the Central Bank of Nigeria’s lead counsel, Kofo Abdulsalam-Alada, had earlier submitted a counter-affidavit in court, stating that the BVN was not only constitutional but also a critical component of Nigeria’s national payment system.

He emphasized that Section 47(2) of the CBN Act empowers the apex bank to establish and regulate payment systems, including the BVN.

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He also argued that the CBN has the legal authority to assign the role of BVN database management to NIBSS as part of its regulatory duties aimed at strengthening public interest and the financial ecosystem.

The court additionally issued a perpetual injunction restraining the Digital Rights Lawyers Initiative and any other individual or organization from contesting NIBSS’s statutory role.

Justice Omotosho concluded that his ruling is a judgment in rem—a declaration binding on all persons, not just the parties involved—unless overturned by a superior court on appeal.

This legal victory represents a significant step for NIBSS, which has been facing repeated litigations challenging its authority over the BVN.

The judgment provides much-needed legal clarity and stability, reinforcing the BVN’s role as a core component of Nigeria’s anti-fraud and identity verification framework in the financial sector.

The BVN is a unique biometric identifier issued to every Nigerian bank customer and linked to all accounts held by the individual across different banks. It has become a cornerstone of identity verification and security in Nigeria’s banking system.