The Bank Verification Number (BVN) database management by Nigeria Inter-Bank Settlement System Plc (NIBSS), according to Justice James Omotosho of the Federal High Court in Abuja, is alleged to be compliant with the Central Bank of Nigeria (CBN) Act and other applicable banking laws.
After listening to both parties, including Kofo Abdulsalam-Alada and representatives of NIBSS and the Central Bank of Nigeria, the judge decided on the date.
Ige, the NIBSS attorney, pleaded with the court to support his client’s requests during the day’s proceedings.
Ige petitioned the court to rule that the NIBSS’s use of the BVN database is required to ensure Nigeria’s stability and security in his court filings.
According to him, the provisions of the Banks and Other Financial Institutions Act of 2017 and the Central Bank of Nigeria Act of 2007 and the apex financial system regulator have a bearing on the authority to issue directives on BVN development.
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He emphasized that Nigeria’s payment and settlement systems are governed by Section 47 (2) of the CBN Act.
In response to this, NIBSS was established along with all other Nigerian banks, he continued.
According to him, the CBN Act gives the apex bank the authority to promote a sound financial system.
He urged the court to take note of the fact that the BVN’s introduction in Nigeria aims to promote a sound financial system.
He continued, “The security of the deposits of the typical Nigerian or even non-Niger bank account holders in Nigeria is very important.”
In order to confirm that the plaintiff has the authority to maintain the BVN database in Nigeria, the counsel addressed the court’s need for consideration of the BVN framework and its operation by NIBSS.
Justice Omotosho held the case until July 4 after hearing the lawyers’ arguments.
In order to stop any institution from challenging its statutory authority to maintain and manage the BVN database, NIBSS joined the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation (AGF) as first defendants through its originating procedures.
Reliefs sought
According to the Banks and Other Financial Institutions Act of 2007 and the revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021, NIBSS requests that it be formally empowered to maintain and manage the BVN database.
It also requests: “A declaration that the plaintiff’s maintenance and management of the Bank Verification Number (BVN) data of Nigerians does not violate any existing laws in Nigeria, including their constitutional right to privacy.
The plaintiff’s legal representative (Digital Rights Lawyers Initiative) and any other person, person, or institution may contest the plaintiff’s statutory authority to maintain and manage the BVN database, whether directly or indirectly through their agents, officers, employees, privies, or any other person acting under their control.
The plaintiff (NIBSS) is charged with developing, regulating, and establishing an integrated, nationwide network for electronic and paperless payments, funds transfers, and transactions settled in accordance with the aforementioned laws and statutes, according to the senior lawyer.
Source: Channels TV
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