A Federal High Court in Abuja has declared that the Central Bank of Nigeria (CBN) has exclusive ownership rights over the “eNaira” digital currency platform and trademark.
Delivering judgment on Friday, May 22, Justice James Omotosho issued a perpetual injunction restraining eNaira Payment Solutions Limited from claiming ownership or rights over the “eNaira” trademark.
Although the company was incorporated by the Corporate Affairs Commission (CAC) in 2004, the court ruled that its name was misleading because of its strong association with Nigeria’s official currency.
“The name chosen by the plaintiff on its incorporation is unregistrable due to its misleading nature, which suggests government patronage,” Justice Omotosho stated.
The court also noted that the Trademark Registry had informed the company in a letter dated November 15, 2021, that approvals previously granted for trademark applications relating to “eNaira” under classes 36 and 42 had been withdrawn.
According to the judgment, the company was further notified that “eNaira” is considered a national intellectual property and a national asset belonging to Nigeria.
Justice Omotosho rejected the company’s attempt to challenge the CBN’s ownership of the digital currency platform, ruling that the firm had no superior legal claim to the trademark.
“A party that has no legal right cannot be entitled to an injunction. Prima facie, the plaintiff has no valid trademark granting it exclusive use of the eNaira name,” the court held.
The judge further emphasised that Section 852(2) of the Companies and Allied Matters Act empowers the CAC to reject or direct changes to company names that imply government affiliation.
“The ‘eNaira’ name is closely linked to Nigeria’s legal tender, which is exclusively regulated by the CBN. An average person is likely to assume the plaintiff is an agent of the Federal Government or the CBN,” the judge said.
The court also found 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, involving the creation and control of a digital currency on its electronic payment platform, undoubtedly creates the impression that it has the authority of the Federal Government of Nigeria to issue and regulate a digital form of the naira,” the ruling stated.
Justice Omotosho warned that allowing a private company to control the “eNaira” name could undermine public confidence and create confusion within Nigeria’s financial system.
“Any digital currency bearing the name ‘eNaira’ would naturally be perceived as an official digital form of the naira. The plaintiff cannot claim control over the name or issue it. Such a situation would be disastrous for the Nigerian economy and create uncertainty among users since it is not backed by the Central Bank of Nigeria,” he added.
The court held that the CAC had lawfully directed the company on December 9, 2021, to change its name within six weeks, but the company failed to comply.
As a result, the court ordered the company to immediately adopt a new name that does not include the word “Naira.”
The suit, marked FHC/ABJ/CS/113/2021, was dismissed, while the court awarded N10 million in costs to the CBN following its successful counterclaim.
During the proceedings, counsel to the plaintiff, David Ityonyman, argued that the word “Naira” should not be treated as exclusive to Nigeria.
“Nothing stops India from having a Naira. Countries such as the United States and Canada also use the dollar, yet none of them claims exclusive ownership of the name,” he argued.
He further maintained that the company had used the “Naira” brand internationally for more than 20 years and had established significant goodwill before the CBN introduced the eNaira platform in 2021.
