The Federal High Court in Abuja has affirmed the Central Bank of Nigeria’s (CBN) exclusive ownership rights over the eNaira digital currency platform, ruling against a private firm, eNaira Payment Solutions Limited, in a trademark dispute.
Delivering judgment on Friday, Justice James Omotosho granted a perpetual injunction restraining the company from presenting itself as the registered proprietor of the “eNaira” trademark.
The court held that although eNaira Payment Solutions Limited had been registered with the Corporate Affairs Commission (CAC) since 2004, the use of the name “eNaira” was misleading because of its close association with Nigeria’s sovereign currency and government authority.
Justice Omotosho stated that the company’s name suggested official government patronage, making it unregistrable under the law.
“The name chosen by the plaintiff on its incorporation is, in the circumstances, unregistrable due to its misleading nature, which suggests government patronage,” the judge ruled.
The court noted that the Trademark Registry had, through a letter dated November 15, 2021, informed the company of the withdrawal and cancellation of approvals earlier granted for the “eNaira” trademark in Classes 36 and 42.
According to the judgment, the registry based its decision on the position that “eNaira is a national intellectual property and constitutes a symbol and national asset of Nigeria.”
Justice Omotosho further held that the plaintiff had no superior legal claim to the trademark compared to the CBN, which launched the eNaira as Nigeria’s official digital currency in 2021.
“A party that has no legal right cannot be entitled to an injunction,” the court said, adding that the plaintiff lacked a valid trademark for the exclusive use of the “eNaira” name.
Citing Section 852(2) of the Companies and Allied Matters Act (CAMA), the judge emphasized that the CAC has the authority to reject or direct the change of any company name that falsely implies government affiliation.
He observed that the term “eNaira” is intrinsically linked to Nigeria’s legal tender, which falls exclusively under the control of the apex bank.
“The plaintiff’s name creates the impression that it is an agent of the Federal Government or the Central Bank of Nigeria,” Justice Omotosho said.
The court also noted that the company’s proposed business activities involving digital currency and electronic payment systems could mislead the public into believing it had official authorization to issue or manage a digital version of the naira.
Justice Omotosho warned that allowing a private entity to control the “eNaira” identity could undermine public trust and create confusion within Nigeria’s financial system.
“Any digital currency bearing the name ‘eNaira’ would naturally be perceived as an official digital form of the naira,” he held.
As part of the ruling, the court ordered eNaira Payment Solutions Limited to immediately adopt a new name that does not contain the word “Naira.”
The suit, marked FHC/ABJ/CS/113/2021, was dismissed, while the court awarded costs of N10 million in favour of the CBN.
The plaintiff had argued that it had conducted business internationally with the “eNaira” identity for more than 22 years before the CBN introduced its digital currency, claiming that the bank’s actions infringed on its rights.
Counsel to the plaintiff, David Ityonyman, had argued before the court that “Naira” was not exclusively Nigerian in origin, noting that the term is also associated with a community in India.
He further contended that several countries share currency names such as “dollar” without claiming exclusive ownership.
However, the court ruled that the public interest and the sovereign nature of Nigeria’s currency outweighed the company’s claims.
