CBN, Bill Gates Partner to Boost Financial Inclusion Drive

* SERAP urges apex bank to withdraw regulations on customers’ social media handles

James Emejo and Udora Orizu in Abuja

The acting Governor of the Central Bank of Nigeria (CBN), Mr. Folashodun Shonubi, has said the apex bank would continue to collaborate with the Bill and Melinda Gates Foundation (BMGF) and other development partners to explore innovative solutions for driving access to finance.

Speaking in Abuja, during the duo’s strategic engagement over the weekend, on how to deepen collaboration on financial inclusion in the country, Shonubi, who was accompanied by the CBN Deputy Governor, Financial System Stability (FSS), Mrs. Aishah Ahmad, pointed out that though much progress had been made in various aspects of financial inclusion, some challenges still remained in attaining the desired level of financial inclusion in Nigeria.
He, therefore, called for greater partnership between the bank and the foundation.

Speaking during the meeting, Shonubi, reiterated the commitment of the CBN to continually partner with BMGF and other development partners to explore innovative solutions for driving access to finance.
In his remarks, the co-chair of the foundation, Mr. Bill Gates highlighted the foundation’s focus areas for continued engagement in Nigeria to include health, agriculture, and financial services.

Gates expressed satisfaction that support from his organisation was catalysing developmental action in the country.
While acknowledging that there were still challenges and gaps, he expressed optimism that the country would witness better outcomes given the new economic and monetary policies currently in place.

The foundation has supported financial inclusion in the country since 2012 and had been a strategic partner of the central bank in driving innovation to reach excluded segments of Nigeria’s population with financial products and services.
According to a statement issued by the bank, the partnership has brought about strategic initiatives including the Nigeria Financial Services Maps, a gateway for geospatial mapping of access points, the development of the National Financial Inclusion Strategy in 2012 and a revision in 2018, research into financial exclusion, scoping of digital financial services in Nigeria, and many more activities that help accelerate access to financial services.

Gates was accompanied by the President, Global Development, BMGF, Christopher Elias, and Senior Programme Officer, BMGF, Abi Jagun. Other members of the CBN team included Director, Development Finance, Mr. Philip Yila Yusuf, and Head, Financial Inclusion, Dr. Paul Oluikpe.

In the meantime, the Socio-Economic Rights and Accountability Project (SERAP) has urged Shonubi to immediately delete the provisions in the CBN’s (Customer Due Diligence) Regulations directing banks to obtain information on customers’ social media handles for the purpose of identification.
SERAP also urged him to withdraw the Circular number FPR/DIR/PUB/CIR/007/076 of 20 June 2023, mandating banks and other financial institutions to implement and comply with the unlawful mandatory provisions on customers’ social media handles in the CBN Regulations.

According to Section 6(a)(iv) of the CBN Regulations, banks and other financial institutions, “shall identify their customer and obtain information on the social media handle of the customer.” Section 6(b)(iii) contains similar provision.”
In the letter dated June 24, 2023, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organisation said the CBN regulations and directive to banks to obtain details of customers’ social media address, “violate Nigerians’ rights to freedom of expression and privacy. It is inconsistent and incompatible with the rule of law.”

SERAP stated that the CBN ought to contribute to the advancement of respect for the rule of law and human rights in the discharge of its statutory functions, and not undermine or violate these fundamental legal requirements and standards.
According to SERAP, the purported mandatory requirement would inhibit Nigerians from freely exercising their human rights online. If obtained, such information may also be misused for political and other unlawful purposes.

The letter, read in part: “We would be grateful if the recommended measures are taken within three days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.
“The mandatory requirement of social media handles or addresses of customers does not serve any legitimate aim. Such information may be used to unjustifiably or arbitrarily to restrict the rights to freedom of expression and privacy.

“SERAP is gravely concerned that the CBN Regulations and directive to banks and other financial institutions would impermissibly restrict the constitutional and international rights to freedom of expression, privacy and victims’ right to justice and effective remedies.
“Requiring social media handles or addresses of customers as a means of identification would have a disproportionate chilling effect on the effective enjoyment by Nigerians of their rights to freedom of expression and privacy online.

“The CBN bears the burden of justifying any restriction on people’s freedom of expression and privacy. Under the Nigerian Constitution 1999 (as amended) and human rights treaties to which the country is a state party, any restrictions on these rights must be applied strictly so that the rights are not put in jeopardy. “There are other means of identification such as passport, driver’s licence, Bank Verification Number (BVN), and Tax Identification Number (TIN), which banks and other financial institutions already require their customers to provide.”