The recent directive from the Central Bank of Nigeria (CBN) ordering commercial banks to obtain customers’ social media handles for identification has drawn criticism from Nigerians.
The CBN introduced the new customer due diligence regulation on Friday as part of its efforts to enhance the identification process in the banking system.
Published on the CBN’s website, the ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ document now requires financial institutions operating under the CBN’s purview to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) process.
The CBN stated that the regulation aims to provide additional customer due diligence measures for financial institutions and ensure compliance with relevant provisions of the Money Laundering (Prevention and Prohibition) Act, Terrorism (Prevention and Prohibition) Act, and international best practices.
Under the new regulations, financial institutions must gather various information about their customers, including their legal names, addresses, telephone numbers, email addresses, social media handles, birth details, bank verification numbers, tax identification numbers, nationality, occupation, and employer’s name. Customers must also provide valid identification documents issued by government agencies.
While the CBN argues that these measures are essential for combating money laundering, terrorism financing, and proliferation financing, Nigerians, particularly social media users, have expressed their discontent.
Many believe that the National Identification Number (NIN) and Bank Verification Number (BVN) are sufficient for identification purposes. Critics also argue that the new regulation violates the recently signed data protection bill by President Bola Ahmed Tinubu.
The new CBN regulation has been received with mixed feelings. Some individuals, like Goodluck Osaretin, believe that financial institutions can gain valuable insights into customers’ online presence and activities through social media handles, aiding in the assessment of potential risks associated with money laundering, terrorism financing, and proliferation financing.
Others, like Hugo Briggs, see this as a method to censor social media in Nigeria through financial institutions, and question the necessity of obtaining social media handles when the BVN already provides effective means to combat illicit funds.
A twitter user @Chine_Egeonu Sherif, argued that this regulation appears to target obedient citizens and will not effectively address the intended issues, while Osamuyi Okpame expressed concern about the potential misuse of personal information and the targeting of specific individuals.
Criticism of the regulation has escalated, with organizations like SERAP (Socio-Economic Rights and Accountability Project) demanding the withdrawal of provisions related to social media handles.
“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.
SERAP argues that the regulations go beyond the CBN’s mandate and threaten privacy rights.