May 22, (THEWILL) — A Federal High Court in Abuja has dismissed a suit filed by eNaira Payment Solutions Ltd against the Central Bank of Nigeria (CBN), the Corporate Affairs Commission (CAC), and the Registrar of Trademarks over ownership claims to the “eNaira” trademark, ordering the company to immediately change its name and awarding ₦10 million damages in favour of the apex bank.
In a judgement delivered on Friday, Justice James Omotosho granted the counterclaims filed by the CBN and CAC, declaring that eNaira Payment Solutions Ltd was not the registered proprietor of the “eNaira” trademark and restraining the company from presenting itself as such.
The court also issued a perpetual injunction against the firm, directing it to adopt another distinct corporate name without the use of the word “Naira,” holding that the existing name was misleading and capable of suggesting government affiliation or patronage.
The suit, marked FHC/ABJ/CS/1113/2021, was instituted by eNaira Payment Solutions Ltd, which sought 17 reliefs, including ₦90.10 billion in damages. The company accused the defendants of unlawfully attempting to withdraw the “eNaira” trademark from it and challenged what it described as an unconstitutional takeover of a brand it claimed to have maintained for more than 20 years.
The plaintiff had urged the court to restrain the CBN from claiming ownership of the name and to invalidate actions taken by the Registrar of Trademarks and the CAC against it.
However, the CBN, in its amended statement of defence and counterclaim filed in July 2024, argued that the “eNaira” designation constituted a national asset and sought a perpetual injunction restraining the company from laying claim to the trademark. The apex bank also demanded ₦20 billion in damages for alleged embarrassment and ₦200 million as cost of litigation.
The CAC, in its own counterclaim, requested an order compelling the company to change its corporate identity, insisting that the name violated provisions of the Companies and Allied Matters Act (CAMA) 2020.
In his ruling, Justice Omotosho held that the Trademark Registry had already withdrawn the acceptance letters earlier issued to the company for “eNaira” applications in classes 36 and 42, following a November 15, 2021 letter which described the term as a national intellectual property and symbol of Nigeria.
According to the judge, the plaintiff had no enforceable legal rights over the trademark and therefore could not seek injunctive reliefs against the defendants.
“A party that has no legal right cannot be entitled to an injunction,” the judge held, adding that the plaintiff had “no valid trademark to the exclusive use of the eNaira trademark.”
Justice Omotosho further ruled that under Section 852(2) of CAMA, the CAC possesses the authority to reject or compel a change of company names capable of misleading the public into believing such firms enjoy government backing.
He observed that the term “eNaira” was closely tied to Nigeria’s legal tender and monetary system, both of which are exclusively regulated by the CBN.
“The plaintiff with the name ‘eNaira,’ even though 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 Central Bank of Nigeria”, the judge said.
The court also noted that the company’s stated objective of creating and controlling a digital fiat currency platform further reinforced the impression that it had official authorisation to issue a digital form of Nigeria’s currency.
Justice Omotosho warned that permitting a private entity to retain control over the “eNaira” identity could undermine Nigeria’s sovereignty and destabilise public confidence in the nation’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 ruled.
The judge also faulted the company for failing to comply with a CAC directive issued on December 9, 2021, which required it to change its name within six weeks.
Consequently, the court dismissed the suit in its entirety, upheld the counterclaims of the CBN and CAC, ordered the company to stop using the disputed name, and awarded ₦10 million damages against the plaintiff in favour of the CBN.
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