The House of Representatives has instructed the Central Bank of Nigeria (CBN) to suspend its directive on the inclusion of social media handles as part of the Know Your Customer (KYC) requirement for bank customers in the country. This decision was made following a motion presented by multiple members of the House during the plenary session.
In addition, the House has mandated the Committee on Banking and Currency to investigate the matter and provide a report within three weeks for further legislative action.
The motion raised concerns about the recent CBN directive, which made it mandatory for commercial banks to collect customers’ social media handles as part of their KYC requirements. While the House acknowledged the importance of social media handles for compliance with anti-money laundering and counter-terrorism financing provisions, it questioned the necessity of this directive and its potential impact on Nigerian citizens.
The House emphasized that the directive conflicts with the right to privacy guaranteed by Section 37 of the Nigerian Constitution. It also highlighted that banks already possess various information, including names, contact details, identification numbers, and utility bills, which enable them to identify and monitor customers.
The House argued that there are existing institutions, such as the Nigeria Police Force, Nigeria Financial Intelligence Unit, and the Economic and Financial Crimes Commission, responsible for monitoring money laundering and financial crimes. It expressed concerns about the negative effects and implications of the directive, particularly on Nigerians who are not active on social media or reside in rural areas.
The House called for a revision of the CBN’s directive to alleviate the hardships faced by Nigerian citizens. The motion received unanimous support from the members during the voice vote conducted by the Speaker.
Furthermore, the House mandated the Committee on Legislative Compliance to ensure the implementation of its decision.
