The Federal High Court in Abuja has restrained eNaira Payment Solutions Ltd from claiming ownership of the “eNaira” trademark and ordered the company to adopt a new name that excludes the word “Naira.”
In a judgment delivered on Friday, Justice James Omotosho granted a perpetual injunction against the company and awarded N10 million in damages.
The ruling followed a legal dispute involving the Central Bank of Nigeria, the Registrar of Trademarks and the Registrar-General of the Corporate Affairs Commission.
Although the court acknowledged that eNaira Payment Solutions Ltd had been incorporated since 2004, Justice Omotosho held that the company’s name was misleading because it suggested affiliation with the Federal Government or the Central Bank of Nigeria.
“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,” the judge ruled.
The court further held that the Corporate Affairs Commission acted within the law when it directed the company to change its name under Section 852(2)(a) and (b) of the Companies and Allied Matters Act (CAMA), 2020.
Justice Omotosho noted that the term “eNaira” is closely linked to Nigeria’s legal tender and falls within the exclusive regulatory authority of the Central Bank of Nigeria.
“The plaintiff with the name ‘eNaira,’ even though it had been incorporated since 2004, has a misleading name. An average person is most likely to think that the plaintiff is an agent of the Federal Government or the Central Bank of Nigeria,” he said.
The company had instituted the suit, marked FHC/ABJ/CS/1113/2021, against the CBN, the Registrar of Trademarks and the CAC. In its amended originating process filed on April 5, 2024, it sought 17 reliefs, including N90.1 billion in damages.
The firm asked the court to restrain the defendants from withdrawing the “eNaira” trademark and prevent the CBN from asserting ownership of the name, arguing that the actions amounted to an unconstitutional takeover of intellectual property it had maintained for more than two decades.
However, the apex bank filed a counterclaim seeking a perpetual injunction restraining the company from presenting itself as the trademark owner. It also demanded N20 billion in damages for alleged reputational harm and N200 million as litigation costs.
The CAC, in its counterclaim, requested an order compelling the company to adopt a distinct name without the use of the word “Naira.”
In his judgment, Justice Omotosho noted that the Trademark Registry had withdrawn acceptance letters previously issued to the company for trademark applications relating to “eNaira” in Classes 36 and 42 through a letter dated November 15, 2021.
According to the court, the Registry maintained that “eNaira” constitutes a national intellectual property asset and symbol of Nigeria.
The judge ruled that the company had no superior legal claim to the trademark and was therefore not entitled to injunctive relief.
“A party that has no legal right cannot be entitled to an injunction. Prima facie, the plaintiff has no valid trademark to the exclusive use of the eNaira trademark,” he stated.
Justice Omotosho warned that allowing a private company to control the “eNaira” name could create confusion in the financial system and undermine public confidence.
He observed that the company’s proposed activities, including the creation and control of a digital fiat currency platform, could mislead the public into believing it had official government authorisation.
“Any digital currency with the name ‘eNaira’ will no doubt create the impression that it is an official digital form of the Naira,” the judge said.
“The plaintiff cannot assert control over the ‘eNaira’ name or issue it. This would be disastrous for the Nigerian economy and create skepticism among users, as it is not guaranteed by the Central Bank of Nigeria.”
The court also noted that the company failed to comply with the CAC’s directive of December 9, 2021, requiring it to change its name within six weeks.
Justice Omotosho subsequently dismissed the suit, describing it as incompetent and unsupported by law and evidence. He declared that eNaira Payment Solutions Ltd is not the registered owner of the “eNaira” trademark and, as a private entity without authority to issue legal tender, is not entitled to register the mark.
The court granted the counterclaims filed by the CBN and CAC, permanently restraining the company from claiming ownership of the trademark and directing it to adopt a new corporate name.
The judgment comes months after the Federal High Court dismissed an interim application by the company seeking to prevent the CBN from asserting rights over the “eNaira” trademark internationally, including before the United States Patent and Trademark Office (USPTO).
The company’s Chief Executive Officer, Jonathan Kenneth Adoke, had sought an order directing the CBN to suspend engagements with foreign authorities over the trademark pending the determination of the substantive suit.
