Court nullifies eNaira Ltd registration, awards N10m damages to CBN

The Federal High Court in Abuja has ruled in favour of the Central Bank of Nigeria (CBN) in a trademark dispute involving eNaira Payment Solutions Ltd, ordering the company to stop presenting itself as the owner of the “eNaira” trademark and to change its corporate name.

Justice James Omotosho, in a judgment delivered on Friday, granted the counterclaims filed by the CBN and the Corporate Affairs Commission (CAC) and awarded N10 million in damages against the company.

The court ordered eNaira Payment Solutions Ltd to adopt a new name excluding the word “Naira,” holding that the company’s name was misleading and implied affiliation with the Nigerian government or the CBN.

“The name chosen by the plaintiff on its incorporation is unregistrable due to its misleading nature, which suggests government patronage,” the judge ruled.

The case arose from a suit filed by eNaira Payment Solutions Ltd against the CBN, the Registrar of Trademarks, and the CAC, seeking to restrain the authorities from withdrawing its claim to the “eNaira” trademark.

The company also sought N90.1 billion in damages, arguing that the government unlawfully interfered with intellectual property it claimed to have held for more than two decades.

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However, the court held that the plaintiff had no valid legal ownership of the trademark.

Justice Omotosho noted that the Trademark Registry, in November 2021, withdrew acceptance letters previously issued to the company for the “eNaira” trademark on the grounds that the name constituted a national asset linked to Nigeria’s sovereign currency system.

According to the court, the plaintiff could not claim exclusive rights over a name closely associated with the country’s legal tender and digital currency framework.

“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.

He added that allowing a private company to retain control of the name could create public confusion and undermine confidence in Nigeria’s financial system.

The court also upheld the CAC’s directive requiring the company to change its name under provisions of the Companies and Allied Matters Act (CAMA) 2020, which prohibit the registration of names implying government endorsement.

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Justice Omotosho observed that although the company had been incorporated since 2004, its proposed business activities, including digital currency operations, reinforced the impression that it had official authorisation from the federal government or the CBN.

The judge warned that allowing a private entity to issue or control a digital currency branded as “eNaira” could harm Nigeria’s financial system.

He consequently dismissed the company’s claims and issued a perpetual injunction restraining it from presenting itself as the proprietor of the “eNaira” trademark.