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CBN Bailed Out Banks to Stem Distress-Sanusi

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Mallam Sanusi Lamido Sanusi, governor of Central Bank of Nigeria (CBN), has said that the apex bank opted to bail out the eight distressed banks instead of outright liquidation so as to prevent a systemic crisis which liquidation would have generated within the entire economy.
Sanusi, spoke at the 2009 National Seminar on banking and allied matters which theme was “Strengthening the Judiciary and the banking industry for economic development”,  jointly organised by the Chartered Institute of Bankers (CIB) and the CBN for judicial officers.
The apex bank had four months ago injected N620 billion into eight banks adjudged to be in grave situation following the outcome of the joint audit of all the 24 commercial banks to ensure its survival instead of outright liquidation.  
Represented by Dr. Kingsley Moghalu, deputy-governor (in charge of financial sector surveillance), Sanusi said that its action was prompted by the need to resolve immediate liquidity challenges confronting the stability of the banking sector.
He said that “Our intervention was aimed at resolving the immediate liquidity challenges facing the banking system and threatening its stability. The question then is why did we choose the option of bailout to ensure the survival of the banks rather than outright liquidation?  
“As indicated by the report of the special audit of all banks, the total deposit liability of the eight banks found to be in grave situation was N3.019tn, while aggregate non performing loans stood at N1.524tn representing 60.75 per cent of industry total.  
 “Furthermore, the eight banks accounted for about 35.6 per cent of the banking industry assets and the eight banks together accounted for 36.11 per cent of loans, 34.52 per cent of deposits and 35.6 per cent of total industry assets as at June 2009.  
 “Given the systemic importance of the banks therefore, and the potential negative impact which their liquidation could have had on the economy, liquidity support and recapitalisation which preserve their status as going concerns and ensure their survival and viability were the only logical options,” he added  
The governor indicated that while it has virtually resolved the immediate liquidity crisis threatening the banking sector, it would now focus on outlining measures to stability sustenance in the sector.
He listed that the measures would include building regulatory capacity, fast-tracking the process of establishing the asset management company, fast-tracking the implementation of risk based consolidation and cross border supervisory frameworks, easing the flow of credit particularly to the real sector and improving governance structure and practices in the financial services sector.  
 Justice Idris Kutigi, chief Justice of the Federation, while declaring the seminar open said that going by the reforms in the banking sector, it was pertinent for Judges to update their skills in specialised areas of the law.  
According to the Chief Justice, “The reforms in the banking sector have thrown up a lot of complex situations which emanate as a result of the modern form of banking. It therefore becomes pertinent to update the knowledge and skills of judges in this specialised area of the law, following rampant abuses by operators in the system”. 

 


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NITDA DG Reaffirms Nigeria–U.S. Partnership on Data Privacy, AI and Cybersecurity

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Kashifu Inuwa Abdullahi, Director General of the National Information Technology Development Agency (NITDA), has reaffirmed Nigeria’s commitment to strengthening collaboration with the United States in building a secure, trusted, and resilient digital ecosystem, with a particular focus on data privacy, artificial intelligence, cybersecurity, and capacity building.

NITDA DG Reaffirms Nigeria–U.S. Partnership on Data Privacy, AI and Cybersecurity

NITDA

He stated this while delivering an address at the Nigeria Data Privacy Capacity Building Workshop organised by the United States Department of State, in collaboration with the Nigerian Mission and relevant stakeholders in the digital ecosystem.

Expressing his excitement at the engagement, Inuwa described the workshop as a strong revalidation of the long-standing partnership between Nigeria and the United States in advancing the country’s technical and digital systems.

According to him, the collaboration is not a new initiative but part of a growing and deliberate effort by both countries to jointly address emerging digital challenges and opportunities.

Inuwa recalled that in April 2024, Nigeria and the United States, through the U.S.–Nigeria Binational Commission, agreed to work together on key areas including data privacy, artificial intelligence, cybersecurity, capacity building, and other aspects of digital development.

He further noted that the same year witnessed the successful hosting of an Artificial Intelligence Conference, co-hosted by the Nigerian Government and the U.S. Mission in Nigeria, as well as Nigeria’s participation in engagements with U.S. cybersecurity companies to explore partnerships aimed at strengthening Nigeria’s technical ecosystem.

He explained that NITDA’s emphasis on data privacy, AI, cybersecurity, and policy is anchored on one central objective: building trust in the digital ecosystem, adding that trust is a critical enabler of digital transformation, as its absence slows down innovation and increases costs, while its presence accelerates progress and reduces barriers to growth.

The NITDA Boss stressed that building a prosperous digital economy requires deliberate efforts to safeguard data privacy, strengthen security frameworks, and deploy AI responsibly.

He noted that artificial intelligence relies on data, data demands privacy, and privacy can only be guaranteed through strong security, making it impossible to address these issues in isolation.

Inuwa described the workshop as the beginning of broader engagements and deeper collaboration in other strategic areas, particularly as Nigeria continues to position itself as a key player in the global digital economy.

He disclosed that following the participation of the U.S. Mission in Nigeria’s National Cybersecurity Conference last year, plans are underway to expand the conference into an international cybersecurity platform this year.

According to him, the international conference will provide an opportunity for U.S. cybersecurity companies to showcase their technologies, explore partnerships with Nigerian firms developing local cyber solutions, and jointly strengthen Nigeria’s cybersecurity ecosystem.

Inuwa also reassured partners and stakeholders of NITDA’s commitment to building the right policies and enabling environment for innovation to thrive.

He noted that Nigeria, alongside Africa, represents the next frontier of the digital economy, driven by a young, digital-native population and a large, expanding market.

He said that while many public and private sector organisations in Nigeria rely on U.S. technologies to build their digital systems, the country also possesses significant local talent capable of developing homegrown solutions to address national and regional challenges.

He added that NITDA remains committed to working with international partners to build local capacity and promote Nigeria’s digital self-determination.

According to the DG, digital technology is no longer optional, as it represents the future of economic growth and development, and no nation can afford to be left behind.

He emphasised that the only way to fully harness the opportunities of the ongoing AI revolution is by safeguarding privacy, establishing sound policies, and laying a strong digital foundation capable of supporting rapid technological advancement.

He appreciated the U.S. Department of State and the U.S. Mission in Nigeria for their continued partnership and support, expressing optimism that the collaboration will be further strengthened to explore new areas of cooperation, particularly in cybersecurity and artificial intelligence, for the mutual benefit of both countries.


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Falana Wins $25,000 Damages from Meta over Fake Illness Video

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Lagos High Court at TBS has awarded $25,000 in damages in favour of Mr. Femi Falana (SAN) in his $5 million lawsuit against Meta Platforms Inc., the US-based technology company owned by Mark Zuckerberg, over the alleged invasion of his privacy.

Falana Wins $25,000 Damages from Meta Over Fake Illness Video

Early in 2025, a video was published on Facebook claiming that Falana was suffering from a terminal illness, which prompted the suit

Delivering judgment on Tuesday, January 13, Justice Olalekan Oresanya held that a global technology company such as Meta, which hosts pages for commercial benefit, owes a duty of care to persons affected by content disseminated on its platform.

Falana, through his lawyer, Mr. Olumide Babalola, accused Meta of publishing motion images and voice captions titled “AfriCare Health Centre” on its platform, suggesting that he suffered from a disease known as prostatitis.

He argued that the publication constituted an invasion of his privacy as guaranteed under Section 37 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).

Falana said the false video about his health status had tarnished his image and reputation built over the years.

He also contended that the publication, which he described as false, offensive and disturbing, painted him in a false light and caused him mental and emotional distress.

In its judgment, the court rejected the argument that digital platforms can rely solely on “hosting” or “intermediary” defences where the platform monetises content and the harm arising from misinformation is reasonably foreseeable.
Falana’s lawyer said the decision reinforces a standard of platform accountability under Nigerian law, aligning with emerging global jurisprudence.

The court further held that “the fact that the applicant is a public figure does not rob him of his right to privacy.” It found that the publication of false medical information intruded into the claimant’s private life, regardless of his public standing.

Babalola said the finding settles an important misconception in Nigerian legal practice and affirms that health data enjoys heightened protection, even for public figures.

The court also held that Meta determines the means and purposes of processing content, monetises pages, and controls distribution algorithms, thereby acting as a joint data controller with page owners.

Consequently, Meta was held vicariously liable for the offensive video.

Babalola said: “This is a major development under the NDPA and weakens the ‘mere platform’ defence traditionally relied upon by Big Tech.”

The court further ruled that Meta breached Section 24 of the NDPA by processing personal data that was inaccurate, harmful, lacked a lawful basis and was unfair to the learned Senior Advocate. The false health information was held to amount to unlawful processing per se.

It emphasised that where the risk of inaccuracy is foreseeable, particularly in relation to sensitive personal data, a platform owes a heightened duty to ensure accuracy and integrity.

The court held that Meta failed to deploy adequate safeguards to prevent or mitigate the harm.

As a global technology company with vast resources, Meta was expected to implement effective content-review mechanisms, rapid takedown processes and safeguards proportionate to the risks posed by misinformation. Its failure to do so, the court held, amounted to regulatory non-compliance.


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Paradigm Initiative Condemns the Internet Shutdown and Media Restrictions in Uganda Ahead of the 2026 General Election

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Paradigm Initiative (PIN) strongly condemns the internet shutdown implemented in Uganda ahead of Thursday’s general election, as well as the restrictions placed on media coverage of protests and demonstrations. These actions constitute serious violations of digital rights, media freedom, and democratic principles at a critical moment in the country’s electoral process.

Paradigm Initiative Condemns the Internet Shutdown and Media Restrictions in Uganda Ahead of the 2026 General Election

Internet Shutdown

Evidence indicates that internet access across Uganda has been disrupted, affecting social media platforms, messaging services, and online news outlets.

This development comes despite earlier public assurances by the Uganda Communications Commission that the government did not intend to shut down the internet during the elections.

The shutdown represents a troubling reversal of that commitment and raises serious concerns about transparency, accountability, and respect for fundamental rights.

Uganda has a well-documented history of internet shutdowns during elections, including during the 2016 and 2021 general elections. In 2021, a near-total internet blackout lasted several days, severely undermining freedom of expression, access to information, election observation, media reporting, and economic activity.

Repeating these measures despite widespread national, regional, and international condemnation demonstrates a continued pattern of using digital restrictions as a tool of election management.

Paradigm Initiative further condemns directives preventing media houses from covering protests or demonstrations during this period. Such restrictions violate media freedom and the public’s right to receive information, and undermine the role of the press as a democratic watchdog. Suppressing coverage of protests fuels misinformation, heightens tension, and erodes public trust in the electoral process.

Article 29 of the Constitution of the Republic of Uganda guarantees the rights to freedom of expression, freedom of the press and other media, and access to information. Uganda is also a State Party to the International Covenant on Civil and Political Rights (ICCPR) and the African Charter on Human and Peoples’ Rights, which protect these rights under Articles 19 and 9, respectively.

Any restriction on these rights must meet the strict tests of legality, necessity, proportionality, and legitimate aim. Blanket internet shutdowns and platform restrictions fail these tests and are incompatible with Uganda’s constitutional and international obligations.

At the international level, the United Nations Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, together with other UN Special Procedures mandate holders, has consistently affirmed that internet shutdowns are inherently disproportionate and can never be justified under international human rights law, including during elections, protests, or periods of political tension.

The African Commission on Human and Peoples’ Rights has recently issued a specific call urging the Government of Uganda to keep the internet on and to respect freedom of expression and media freedom during the current electoral period.

This call builds on established African human rights standards, including Resolution 580 on Internet Shutdowns and Elections in Africa and Principle 38 of the Declaration of Principles on Freedom of Expression and Access to Information in Africa, which prohibits States from interfering with access to digital technologies.

Internet Service Providers and technology companies operating in Uganda also bear responsibility under the UN Guiding Principles on Business and Human Rights to respect human rights, ensure transparency, and avoid complicity in unlawful or disproportionate restrictions on connectivity.

Paradigm Initiative calls for:

The immediate restoration of full internet access across Uganda and an end to all forms of digital disruption during and after the electoral period.

The withdrawal of all directives restricting media coverage of protests, demonstrations, or political developments during elections.

Accountability from Internet Service Providers, including the publication of transparency reports to users detailing government orders affecting internet access.


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