House of Reps Moves to Stop CBN From Collecting Bank Customers Social Media Handles

The House of Representatives has asked the Central Bank of Nigeria (CBN) to temporarily suspend the implementation of the regulation requiring banks to collect and verify their clients' social media handles.  

The proposal was made at Tuesday's plenary session, following the adoption of a resolution presented by nine parliamentarians.

As part of stricter Customer Due Diligence (CDD) procedures, the Central Bank of Nigeria (CBN) required banks to gather their consumers' social media handles in June 2023.

According to the CBN, the regulation would allow financial institutions to collect data about their customer's online presence and activities in order to more accurately identify possible risks connected to money laundering, terrorist funding, and proliferation financing.

During the panel discussion on the motion, Rivers State Representative Kelechi Nwogu stated that there are more efficient ways to monitor money laundering and terrorism financing, such as using the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), and intelligence agencies.

• Furthermore, if the directive becomes law, Nigerians who do not use social media but generate significant income from their businesses and trades will be forced to use formal banking systems or will be excluded from them on a systemic level, with all of the consequences and drawbacks that entails.

Part of Kelechi Nwogu Speech

“As laudable as this directive may appear, it is unnecessary as it is likely to bear pressure on teeming Nigerian masses at a trying period

“If the directive takes effect, Nigerians who are not on social media, with large turnovers from their businesses and trades, would be compelled to or systematically excluded from formal banking systems with its attendant negative effects and implications

“Implementing the CBN’s directive at this point may clearly be unnecessary as it is likely to bear a lot of pressure on teeming Nigerian masses

“There is a need to revisit and halt the Central Bank of Nigeria directive to reduce the hardship and pain faced by teeming Nigerians

He further emphasized that the order is in violation of Section 37 of the constitution, which safeguards the right to privacy.

The Nigerian Data Protection Commission (NDPC), the country's data regulator, has declared the CBN instruction unconstitutional.