The Nigerian House of Representatives has asked the Central Bank of Nigeria (CBN) to temporarily halt the implementation of an earlier directive to use social media handles for know-your-customer (KYC) operations.
The decision was made after a motion was approved by nine lawmakers during the plenary session.
In June 2023, the CBN made it mandatory for all financial institutions to collect and verify all social media handles for KYC operations, as part of its Customer Due Diligence Regulations 2023.
According to the CBN, the policy will allow financial institutions to conduct an effective assessment of potential risks associated with money laundering, terrorism financing, and proliferation financing.
During the debate on the motion, Kelechi Nwogu, a representative from Rivers, highlighted that the directive violates Section 37 of the Constitution, which protects the right to privacy.
He further argued that there are more efficient ways to monitor money laundering and the financing of terrorism, such as using the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), and intelligence agencies. Additionally, the directive will disproportionately impact Nigerians who do not use social media but generate significant income from their businesses and trades. These Nigerians will either be forced to use formal banking systems, or they will be excluded from them on a systematic level, with consequences for their businesses and livelihoods. At this time, barely 16% of Nigeria’s 190 million population have access to social media.
With Nigeria’s troubling historywith social media, many Nigerians tagged the move as yet another move by the government to curtail social media.
