The Central Bank of Nigeria (CBN) has instructed Nigerian banks to update their KYC (Know Your Customer) information. As part of the new regulation, banks will now ask for social media accounts. These regulations have already been gazetted (or finalized) which means it is not up for debate.
In a circular which was published on June 24th and signed by the defunct CBN governor, Godwin Emefiele on May 30th 2023, the apex bank states that the Customer Due Diligence Regulations, 2023 provide guidelines for individuals, businesses, and foreign individuals to open bank accounts in Nigeria. According to section 6 (IV) of the new regulations, banks under the supervision of the CBN must collect and verify customers’ social media handles as part of the KYC process. This applies to both individuals and companies.
While this directive by the CBN may rattle customers, the guidelines do not state that it is mandatory for banks to collect social media profiles of customers. It however states that banks are to immediately comply to the new guidelines for updating customer information. In 2014 when the BVN regime kicked off, bank customers absolutely had to unify their bank accounts before they were able to keep transacting. The new CBN guidelines do not say what not providing social media accounts in one’s biodata will affect. It doesn’t state if customers with “up to date” information still need to provide new details.
Typically, when opening a bank account in Nigeria, the account owner would need to provide either an email address or a phone number. This was primarily for transaction alerts and other real-time notifications to be sent to. Customers also needed to provide a home address for bank statements, ATM cards, letters, etc to be delivered.
In updating one’s account, a new passport photograph would be taken and one’s signature would also be re-signed to accommodate marginal changes in their signature between when they first opened the account and present day. Asking for a social media handle in updating a bank account may be uncomfortable for the digitally savvy who are iffy about their every detail being given to government institutions or agencies.
This move by the CBN has also ruffled feathers among Nigeria’s massive youth population who led protests in 2020 against police brutality. Tagged #EndSARS, the protests which started from Twitter gained unprecedented momentum but took a turn for the worse when some of its more popular voices became targeted as their bank accounts started winding up frozen and their international passports seized.
On the flip side however is Nigeria’s digitally shy/unexposed population; millions that. This new item in the CBN guideline makes little to no consideration for this underserved population coupled with the fact that internet penetration – the singular most important tool for accessing social media – remains below 50%.
At the moment, most banks have yet to make any official announcements, and their customers wait with bated breath on whether they will make it compulsory to provide a Twitter, Instagram or Facebook profile name before cashing a huge cheque or being able to withdraw personal funds.
