A Federal High Court in Abuja has delivered a landmark judgment affirming that the Central Bank of Nigeria holds exclusive ownership rights over the eNaira digital currency platform and its trademark. Justice James Omotosho, in a ruling delivered on Friday, May 22, issued a perpetual injunction restraining eNaira Payment Solutions Limited from presenting itself as the owner of the eNaira trademark.
Court Rejects Misleading Company Name
Although eNaira Payment Solutions Limited had been registered with the Corporate Affairs Commission since 2004, the court held that the name was misleading due to its close connection to Nigeria’s sovereign currency. Justice Omotosho stated, “The name chosen by the plaintiff on its incorporation is in the circumstances unregistrable due to the misleading nature of the name, which suggests government patronage.”
Trademark Registry Cancellation
The court further noted that the Trademark Registry had earlier informed the company through a letter dated November 15, 2021, that approvals for eNaira trademark applications under classes 36 and 42 had been cancelled and withdrawn. According to the judgment, the company was also notified that “eNaira is a national intellectual property and constitutes a symbol and national asset of Nigeria.”
No Legal Right to Injunction
The court dismissed the company’s attempt to strip the CBN of ownership rights over the digital currency platform, holding that the firm had no superior legal claim to the trademark. “A party that has no legal right cannot be entitled to an injunction. The purport of this is that, prima facie, the plaintiff has no valid trademark to the exclusive use of the eNaira trademark,” the court held.
Authority Under Companies Law
Justice Omotosho emphasized that under Section 852(2) of the Companies and Allied Matters Act, the CAC has the authority to reject or order changes to company names that suggest affiliation with the government. “The eNaira name is so closely linked to the legal tender of Nigeria, which is exclusively controlled by the CBN. The plaintiff, with the name eNaira, even though it had been incorporated since 2004, has a misleading name. An average person on the street is most likely to think that the plaintiff is an agent of the Federal Government or the CBN,” the judge said.
Risk of Confusion in Financial System
The court also observed that the company’s proposed activities involving digital currency operations created the impression that it had official government authority to issue or manage a digital version of the naira. “The proposed business of the plaintiff, which according to the evidence-in-chief of PW-1 is the creation and control of a digital currency on their electronic payment platform, no doubt creates the impression that the plaintiff has the authority of the Federal Government of Nigeria to issue and control a digital form of the Naira,” the ruling stated.
Warning Against Private Control
Justice Omotosho warned that allowing a private entity to control the eNaira name could undermine public trust and create confusion within Nigeria’s financial system. “Any digital currency with the name eNaira will no doubt create the impression that it is an official digital form of the Naira. The plaintiff cannot assert control over the eNaira name or issue it. This would be disastrous for the Nigerian economy and will create skepticism among users, as it is not guaranteed by the Central Bank of Nigeria,” he added.
Compliance Order and Costs
The court held that the CAC had lawfully directed the company to change its name within six weeks of its December 9, 2021 directive, but noted that the company failed to comply. Consequently, the court ordered the company 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 N10 million in costs in favor of the CBN following its successful counterclaim.
Plaintiff’s Arguments Rejected
During proceedings, counsel to the plaintiff, David Ityonyman, argued that the word “Naira” was not exclusive to Nigeria and should not be monopolized. “Nothing stops India from having a Naira. Also, countries like the U.S. and Canada make use of dollars. None of them has laid claim to the name,” Ityonyman submitted. He also argued that the company had used the “Naira” branding internationally for more than two decades and had built substantial goodwill before the CBN launched the eNaira platform in 2021. However, the court rejected these arguments, emphasizing the sovereign nature of the naira and the need to protect public trust in the financial system.
