The Federal High Court in Abuja has ruled in favour of the Central Bank of Nigeria in a major legal dispute over the ownership of the eNaira trademark. Justice James Omotosho delivered the judgment on Friday, granting a perpetual injunction against eNaira Payment Solutions Ltd and ordering the company to stop presenting itself as the owner of the “eNaira” trademark.
The court also directed the company to immediately ce its name to another distinct identity without using the word “Naira”. In addition, the judge awarded N10 million damages against the company.
According to the judgment, the court agreed with the arguments of the Central Bank of Nigeria and the Corporate Affairs Commission that the company’s name was misleading and created the impression that it was linked to the Federal Government or the apex bank. Justice Omotosho stated that the name suggested government patronage and was therefore unregistrable under the Companies and Allied Matters Act 2020.
The dispute began after eNaira Payment Solutions Ltd filed a suit seeking to stop the CBN and other government agencies from withdrawing the trademark and claiming ownership of the eNaira name. The company had demanded over N90 billion in damages, describing the actions of the defendants as an unlawful takeover of its property.
However, the court held that the company had no legal right to exclusively use the trademark. Justice Omotosho noted that the Trademark Registry had already withdrawn the company’s trademark applications in 2021 because eNaira was considered a national intellectual property and national asset.
The judge further warned that allowing a private company to control the eNaira name could create confusion in the financial sector and negatively affect the Nigerian economy. He stressed that any digital currency bearing the name eNaira would naturally appear to be an official currency issued or backed by the Central Bank of Nigeria.
The court ultimately dismissed the suit filed by eNaira Payment Solutions Ltd and upheld the counterclaims filed by the CBN and the CAC.
Leave a comment