SERAP sues CBN over social media handles of demanding bank customers

The Socio-Economic Rights and Responsibility Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for “failure to remove manifestly unlawful provisions of the Central Bank of Nigeria (Customer Due Diligence) Regulations directing banks to obtain information about customers’ social media IDs for identification purposes”.

Last month, the CBN issued a circular requiring banks and other financial institutions to implement and comply with the mandatory provisions on customer social media identifiers in the CBN Regulations.

In case number FHC/L/CS/1410/2023 filed last Friday in the Federal High Court, Lagos, SERAP seeks: “an order of mandamus to direct and compel the Central Bank of Nigeria to withdraw its directive dated June 20, 2023 to banks and other financial institutions to obtain information from customers’ social media pseudonyms.”

SERAP also seeks: "an order of mandamus to compel the CBN to remove the unlawful provisions of Section 6 of its Customer Due Diligence Regulations 2023 as they are inconsistent with Section 39 of the Nigerian Constitution 1999 [as amended] and Section 9 of the African Charter on Human and Peoples' Rights."

SERAP also seeks: "an order prohibiting the CBN from enforcing or giving effect to the unlawful provisions of Section 6 of its Customer Due Diligence Regulations 2023, ordering banks and other financial institutions to obtain information from customers' social media handles."

In the lawsuit, SERAP argues that: "The mandatory requirement of social media identifiers or customer addresses serves no legitimate purpose. Such information may be used to unjustifiably or arbitrarily restrict the rights to free expression and privacy."

SERAP also argues that "unless the remedies sought are granted, the CBN will implement and enforce the illegal directive in violation of citizens' rights to free speech and privacy."

According to SERAP, "There are other means of identification such as passport, driver's license, bank verification number (BVN) and tax identification number (TIN), which banks and other financial institutions already require their customers to provide."

SERAP also argues that "the additional requirement to obtain the details of a customer's social media identifier or address does not meet the requirements of legality, necessity and proportionality."

SERAP further asserts that “the fact that there are sufficient means of identification that the CBN, banks and other financial institutions can rely on to meet the know-your-customer requirement also increases fears of abuse and confers a high level of discretion on banks and financial institutions.”

The lawsuit filed on behalf of SERAP by its attorneys, Kolawole Oluwadare and Ms. Blessing Ogwuche, reads in part: "Obtaining information about customers' social media IDs or addresses as a means of identification is more intrusive than necessary."

"According to Article 6(a)(iv) of the CBN Regulations, banks and other financial institutions "must identify their customer and obtain information about the customer's social network handle". Article 6(b)(iii) contains similar provisions."

“The so-called mandatory requirement would prevent Nigerians from freely exercising their human rights online. If obtained, this information may also be used for political or other unlawful purposes.”

"The CBN's regulations and directive to banks and other financial institutions would impermissibly restrict constitutional and international rights to freedom of expression, privacy, and victims' rights to justice and effective remedies."

"Requiring social media IDs or customer addresses as a means of identification would have a disproportionate chilling effect on Nigerians' effective enjoyment of their rights to freedom of expression and privacy online."