The CBN, in its latest policy, said the inclusion of social media handles in the "Know Your Customer" details will provide insights into customers' online presence and activities and help to assess potential risks and monitor for suspicious behaviour.
The House of Representatives has asked the Central Bank of Nigeria (CBN) to suspend the implementation of the Customer Due Diligence Regulations, 2023, which makes it mandatory for customers to provide their social media details.
It described the policy as unconstitutional as it violates section 37 of the 1999 constitution.
This resolution was a sequel to a motion moved by Kelechi Nwogu (PDP, Rivers) and eight others on Tuesday during plenary.
PREMIUM TIMES had reported that the CBN, in its latest policy, stated that the inclusion of social media handles in the "Know Your Customer" details will provide insights into customers' online presence and activities, helping to assess potential risks and monitor for suspicious behaviour.
Moving the motion, Mr Nwogu said the policy will have a negative impact on the banking sector if social media handles are included as a mandatory requirement for account holders.
He added that it will equally affect the financial inclusion drive of the country because some Nigerians are not on social media.
"This directive by the CBN is in conflict with the provision of Section 37 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) on the right to privacy of citizens," he said.
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"Banks in the country already have the names, telephone numbers, passport photographs, emails, National Identification Number (NIN), Biometric Verification Number (BVN), utility bills and other basic requirements.
"If the directive takes effect, Nigerians who are not on social media, with large turnovers from their businesses and trades, would be compelled to or systematically excluded from formal banking systems with its attendant negative effects and implications," he said.
Mr Nwogu added that the argument of using the policy to tackle money laundering and terrorism financing is not tenable because the Nigeria Police Force (NPF), Nigeria Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), other intelligence and crime tracking agencies are better equipped to take care of that.
"There are better means of monitoring money laundering, terrorism financing, and proliferation financing, such as the Nigeria Police Force (NPF), Nigeria Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), intelligence and crime tracking agencies, amongst others," he said.
Consequently, the House resolved to urge the CBN to halt the implementation of the policy.
It mandated the committee on banking and currency (when constituted) to investigate the matter and report back within three weeks for further legislative action.
The House also mandated the committee on legislative compliance (when constituted) to ensure implementation.
