The Federal High Court in Abuja has dismissed a request by a data lawyers’ association to be joined as a defendant in the suit challenging the Nigeria Inter-Bank Settlement System Plc’s (NIBSS) restraining order over its management of the Bank Verification Number (BVN) database.
Justice James Omotosho delivered the ruling on Monday after hearing from the legal representatives of the joinder applicant, the Incorporated Trustees of Data Privacy Lawyers Association (DPLAN), as well as NIBSS and the Central Bank of Nigeria (CBN) on April 14, 2025.
The suit by NIBSS seeks a restraining order to prevent any institution from challenging its statutory authority to maintain and manage the BVN database.
According to NIBSS’s originating processes seen by Nairametrics, NIBSS’s counsel, Ademola Oluwawolemi Esan, SAN, joined the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney-General of the Federation as first to third defendants.
Legal Dispute
Esan is seeking a declaration that NIBSS is statutorily empowered to maintain and manage the BVN database pursuant to the Central Bank Act 2007, the Banks and Other Financial Institutions Act 2020, and the Revised Regulatory Framework for the Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021.
“Pursuant to the provisions of the Framework, NIBSS, as a designated participant in BVN operations, is statutorily authorized to manage and maintain the BVN database and ensure its seamless operation, among other functions,” he stated.
- NIBSS accused the Digital Rights Lawyers Initiative of filing multiple suits-either directly or through proxies-challenging its authority to manage the BVN database and alleging that such management violates constitutional privacy rights.
- However, the Digital Rights Lawyers Initiative denied the allegations in their court processes.
At the hearing in April, Ayomide T. Ahmed appeared on behalf of the Data Privacy Lawyers Association, seeking to be joined as a defendant in the suit.
- He argued that the outcome of the case would impact the rights of his client and its members, especially regarding the BVN, in light of the relief sought to bar any institution from challenging NIBSS’s authority.
DPLAN stated that it is an association of experts in privacy and data protection, whose members are directly affected by the subject matter due to their objectives and ownership of bank accounts.
- Counsel for the CBN, Abdulfatai Oyedele, argued that any party seeking to be joined must attach a proposed defence, highlighting that DPLAN failed to do so.
- Esan, counsel for NIBSS, alleged that the chairman of the party seeking joinder is also the counsel for the first defendant and one of its trustees.
“What they do is sue all over the country. The matter is never heard on its merit. They withdraw, and when the case is finally about to be heard, they bring an application to delay the hearing,” he claimed.
He urged the court not to waste judicial time and to dismiss the joinder application.
Court’s Ruling
Ruling on the joinder request on Monday, Omotosho said the sole issue to determine was whether the application for joinder by DPLAN was “meritorious”.
- He highlighted that only proper and necessary parties are permitted by law to join a case.
“A necessary party is a party whose right will be affected by the order of a court,” he added.
- The judge said that while it is clear that the suit by NIBSS seeks judicial pronouncement regarding its BVN management, the issue can be determined by the court in the absence of the joinder applicant (DPLAN).
- The judge further held that the joinder applicant cannot join the suit to protect the personal interests of its members, as this would imply that every Nigerian is a potential defendant in the suit.
- He stressed that the presence of the Attorney General of the Federation is sufficient to defend the BVN management suit on behalf of Nigerians.
“I fail to see how the interest of the applicant (DPLAN) will be jeopardized if it is not joined. This process is unnecessary,” the judge ruled.
- Omotosho concluded that the application for joinder has failed, as DPLAN’s motion for joinder had no basis in law.
- The judge subsequently dismissed the motion.
The matter was then adjourned until May 26 for the hearing of the substantive suit by NIBSS.
What You Should Know
The instant case highlights NBISS’s legal moves aimed at clearing all legal hurdles regarding its maintenance and management of the BVN.
NBISS believes it has the statutory authority to manage the BVN but seeks the court’s protection following a number of litigations against it in recent years.
The BVN in question is a unique number that allows individual accounts to be verified across the Nigerian banking industry.
This BVN is issued to every bank customer at enrollment and is linked to all of the customer’s bank accounts in Nigeria.
