The National Commissioner for the Nigeria Data Protection Bureau, Dr Vincent Olatunji has called the attention of the Central Bank of Nigeria to following the principle of data minimization when collecting bank users’ data.
Olatunji kicked against the regulation of CBN mandating financial institutions to obtain social media handles, among other data, of customers.
According to Business Remarks findings, data minimization is the standard for limiting the collection, use, transfer, and retention of personal information to that which is reasonably necessary.
While speaking on Channels Television’s Politics Today programme on Monday, he described the collection of such data as unnecessary, noting that the Commission has written to the apex bank.
He said, “We have done a letter to the CBN about what they have done because in data protection and privacy issues. On data minimization; there are some basic principles to follow when you want to collect citizens’ data.
“One, there is what is called data minimization. That is, you don’t collect data more than for the purpose for which you want to use it. There is a limit to the level of data you must collect.
“Two, purpose limitation: what purpose? Why do you actually need somebody’s data? In this case, it is for financial transactions. The issue of asking for their social media is not really necessary.”
He noted that if the CBN wants to use such data under public interest as a regulator to monitor financial transactions, there are guidelines to follow.
One such guideline includes informing the customers and stating the purpose. However, he noted that “ideally, that should not happen. We are engaging the CBN on this.”
He added that “You don’t collect data more than what you need, so there is no point in collecting such data. So, we will definitely take them up on it and work with them and look at the best solution out of it. Data minimization is key to any data collection.”
It was earlier reported that the CBN mandated financial institutions to obtain the social media handle, e-mail addresses, telephone numbers, residential addresses, and more of their customers.