SERAP Threatens To Sue CBN Over Regulations On Customers’ Social Media Handles

Socio-Economic Rights and Accountability Project (SERAP) has threatened to sue the Central Bank of Nigeria (CBN) over its new Regulations on customers’ social media handles.

The apex bank in its new customer Due Diligence Regulations, which is aimed at further deepen the identification process in the banking system, had mandated Financial Institutions to obtain the social media handle, e-mail addresses, telephone numbers, residential addresses, among others from their customers.

But reacting, SERAP urged the Acting Governor of the CBN, Folashodun Shonubi, to immediately delete the provisions in the CBN (Customer Due Diligence) Regulations or face legal action.

In a letter dated June 24, 2023 and signed by SERAP Deputy Director, Kolawole Oluwadare, which was made available to THE WHISTLER in Lagos, the organisation said the CBN Regulations and directive to banks to obtain details of customers’ social media address violate Nigerians’ rights to freedom of expression and privacy, adding that it is inconsistent and incompatible with the rule of law.

SERAP said the CBN ought to contribute to the advancement of respect for the rule of law and human rights in the discharge of its statutory functions, and not undermine or violate these fundamental legal requirements and standards.

According to the organisation, the purported mandatory requirement would inhibit Nigerians from freely exercising their human rights online, stressing that if obtained, such information may also be misused for political and other unlawful purposes.

The letter, read in part: “We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”

“The mandatory requirement of social media handles or addresses of customers does not serve any legitimate aim. Such information may be used to unjustifiably or arbitrarily to restrict the rights to freedom of expression and privacy.”

“SERAP is gravely concerned that the CBN Regulations and directive to banks and other financial institutions would impermissibly restrict the constitutional and international rights to freedom of expression, privacy and victims’ right to justice and effective remedies.”

“Requiring social media handles or addresses of customers as a means of identification would have a disproportionate chilling effect on the effective enjoyment by Nigerians of their rights to freedom of expression and privacy online.”

“The CBN bears the burden of justifying any restriction on people’s freedom of expression and privacy. Under the Nigerian Constitution 1999 [as amended] and human rights treaties to which the country is a state party, any restrictions on these rights must be applied strictly so that the rights are not put in jeopardy.”

“There are other means of identification such as passport, driver’s licence, Bank Verification Number (BVN), and Tax Identification Number (TIN), which banks and other financial institutions already require their customers to provide.”

“The additional requirement of obtaining details of a customer’s social media handle or address fails to meet the requirements of legality, necessity, and proportionality.”

“The requirement of necessity implies an assessment of the proportionality of the grounds, with the aim of ensuring that the excuse of ‘regulations on customer due diligence’ is not used as a pretext to unduly intrude upon the rights to freedom of expression and privacy.”

“The CBN Regulation does not demonstrate how the use of social media handle or address as a means of identification would serve to improve banks and other financial institutions’ ability to implement and comply with the laws and regulations relating to customer due diligence.”