Physical Address
60 Ekwema Cres, Layout 460281, Imo
Nigerian Court Upholds NIBSS’s Right to Manage the BVN Database
The Federal High Court in Abuja has ruled in favor of the Nigeria Inter-Bank Settlement System Plc (NIBSS), upholding NIBSS’s right to manage the BVN database across Nigeria. This important court decision confirms that NIBSS has the legal authority to maintain and oversee the Bank Verification Number (BVN) system, which is crucial for the country’s banking and financial operations.
The case was presided over by Justice James Omotosho, who delivered the judgment on Friday, July 4, 2025. The court found that NIBSS’s management of the BVN database is backed by the Central Bank of Nigeria (CBN) Act of 2007, the Banks and Other Financial Institutions Act (BOFIA) 2020, and other relevant banking laws. The judge emphasized that NIBSS’s role in managing the BVN does not violate Nigerians’ constitutional right to privacy, dismissing claims from groups that had challenged this authority.
The dispute arose after the Digital Rights Lawyers Initiative questioned NIBSS’s authority to control the BVN database, claiming that it infringed on privacy rights. NIBSS, supported by the CBN, argued that its management of the BVN is essential for the security and stability of Nigeria’s financial system. NIBSS’s lead counsel, Wolemi Esan, SAN, explained that NIBSS is responsible for facilitating electronic payments, fund transfers, and settlement of transactions between banks, as well as operating the Nigeria Central Switch. Managing the BVN system is part of these statutory duties.
In court, NIBSS sought a declaration that its handling of BVN data does not violate any laws, including privacy rights, and requested a perpetual injunction to stop any further legal challenges to its authority. The CBN, through its lead counsel Kofo Abdulsalam-Alada, supported NIBSS’s position, stating that the management of the BVN database is constitutionally justified and necessary for safeguarding public interest and enhancing financial security. The CBN’s power to regulate payment systems like the BVN is clearly established under Section 47(2) of the CBN Act and BOFIA 2020.
Justice Omotosho’s ruling confirmed that the CBN has the power to make financial regulations, and that NIBSS is empowered by law to maintain the BVN database. The court also issued an order preventing the Digital Rights Lawyers Initiative and any other person or institution from contesting NIBSS’s authority in the future. This means that no Nigerian institution can legally challenge NIBSS’s right to manage the BVN database going forward.
The Bank Verification Number is an 11-digit unique number issued to bank customers by the CBN to verify their identity across all banks in Nigeria. The BVN system was created to improve security, reduce fraud, and make banking transactions smoother and safer. It also helps to authenticate transactions and verify customer identities whenever they use banking services.
Read Next: Flutterwave Relaunches Send App in US with 20 More Licences
This court decision is significant because it strengthens the regulatory framework around Nigeria’s financial system and ensures that NIBSS can continue to manage the BVN database without interruption. It also reassures banks, customers, and regulators that the BVN system is legally protected and essential for fighting financial crimes and protecting the integrity of banking operations in Nigeria.
The Federal High Court in Abuja clearly upholds NIBSS’s right to manage the BVN database, confirming that its management of the system is lawful, constitutionally sound, and vital for Nigeria’s financial security. The ruling puts an end to ongoing legal challenges and secures NIBSS’s role as the official manager of the BVN database nationwide.
Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.
