Court grants CBN sole ownership of eNaira platform
Federal High Court Rules in Favor of CBN Over eNaira Trademark
By Ikechukwu Nnochiri
ABUJA — The Federal High Court granted the Central Bank of Nigeria (CBN) exclusive ownership of the eNaira digital currency platform in a ruling delivered on Friday.
Justice James Omotosho issued a perpetual injunction against eNaira Payment Solutions Limited, prohibiting the company from claiming to be the registered proprietor of the “eNaira” trademark. The court found that while the company has been registered with the Corporate Affairs Commission (CAC) since 2004, its chosen name suggests a misleading association with Nigerian sovereignty.
“The name chosen by the plaintiff at its incorporation is unregistrable due to its misleading nature, which implies government endorsement,” Justice Omotosho stated.
The court’s ruling referenced evidence that the Trademark Registry notified eNaira Payment Solutions on November 15, 2021, of the cancellation of approvals related to its applications for the “eNaira” trademark in specified classes. This decision was based on the assertion that “eNaira” constitutes national intellectual property and a symbol of Nigeria.
The ruling emphasized that the private firm, which initiated legal action to deny the CBN’s rights to the electronic platform, lacked a legal claim to the trademark. “A party without legal rights cannot be entitled to an injunction,” the judge noted, adding that prima facie, eNaira Payment Solutions had no valid claim to the exclusive use of the eNaira name.
Moreover, Justice Omotosho cited Section 852(2) of the Companies and Allied Matters Act, which allows the CAC to deny the registration of a company whose name implies government support. He highlighted that the name “eNaira” is closely associated with Nigeria’s legal tender, controlled solely by the CBN.
Justice Omotosho further stated that the existence of a misleading name could lead the CAC to order a company to change its name, expecting compliance within six weeks from the directive. He noted that eNaira Payment Solutions failed to comply with such a directive issued on December 9, 2021.
Allowing the private company to control the name would diminish Nigeria’s sovereignty, the judge argued.
The court’s final ruling dismissed the suit marked FHC/ABJ/CS/113/2021 and ordered eNaira Payment Solutions to adopt a new name that does not include “Naira.” The court also awarded N10 million in costs to the CBN.
In court, the counsel for the plaintiff, Mr. David Ityonyman, contended that the name “Naira” originates from a community in India and stated that no other country claimed such usage. He argued that eNaira Payment Solutions had utilized the name for over 22 years before the CBN took action to appropriate it.
The ruling marks a significant development in the governance of digital currency in Nigeria as the CBN continues to lead efforts in the digital domain.
