The House of Representatives has called on the Central Bank of Nigeria (CBN) to halt the implementation of its directive that mandates banks to collect customers’ social media handles as a means of identification.
This resolution was reached following a motion sponsored by nine members in response to the CBN’s recently released Customer Due Diligence Regulations for 2023.
In its regulations, the CBN emphasized the importance of obtaining comprehensive customer information, including social media handles, to ensure compliance with anti-money laundering and counter-terrorism financing provisions.
However, the House expressed concerns about the potential exclusion of Nigerians who are not active on social media but have significant turnovers from their businesses and trades.
One of the key issues raised by the House was the adverse impact this directive could have on millions of Nigerians, particularly illiterate or semi-literate business owners, traders, and entrepreneurs residing in rural areas and villages who do not possess social media accounts.
They argued that such individuals may be systematically excluded from the formal banking system, leading to undue hardship.
Furthermore, the House has announced its intention to conduct an investigation into the matter of excessive charges and illegal deductions by commercial banks operating in the country. This move aims to address concerns raised by customers regarding unfair banking practices.
The CBN defends its Customer Due Diligence Regulations by stating that the measures are designed to enhance financial institutions’ ability to identify and monitor potential risks associated with customer activities.
However, the Socio-Economic Rights and Accountability Project (SERAP), a non-governmental organization, has criticized the directive as unlawful and a violation of Nigerians’ rights to freedom of expression and privacy.
The resolution passed by the House of Representatives highlights the need for a careful evaluation of the potential consequences of implementing the CBN’s directive.
Lawmakers are striving to strike a balance between combating financial crimes and ensuring inclusive access to banking services for all Nigerian citizens.
The House’s call to halt the implementation of this directive serves as a demonstration of its commitment to protecting the rights and interests of the Nigerian people.
As the investigation into excessive charges and illegal deductions unfolds, stakeholders eagerly await the outcome, hoping for a fair and transparent resolution that fosters trust in the banking sector
Author
