Court Orders CBN Exclusive Rights to “eNaira” Trademark, Blocks Private Firm

A Federal High Court in Abuja has ruled that the Central Bank of Nigeria (CBN) has exclusive ownership rights over the eNaira digital currency platform and the “eNaira” trademark.

In a judgment delivered on Friday, May 22, Justice James Omotosho issued a perpetual injunction restraining eNaira Payment Solutions Limited from presenting itself as the owner of the eNaira trademark.

The court said that although the company was registered with the Corporate Affairs Commission (CAC) in 2004, the “eNaira” name was misleading because of its close link to Nigeria’s sovereign currency. The judge held that the name was unregistrable due to the impression it creates of government patronage.

Justice Omotosho also noted that the Trademark Registry had previously informed the company, in a letter dated November 15, 2021, that approvals related to the eNaira trademark under classes 36 and 42 were cancelled and withdrawn. The court further said the company was notified that “eNaira is a national intellectual property” and a symbol and national asset of Nigeria.

The court rejected the company’s bid to remove CBN’s ownership rights, saying it had no superior legal claim. The judge ruled that a party without a legal right cannot be granted an injunction, and said the company had no valid trademark claim to exclusive use of the eNaira name.

Citing Section 852(2) of the Companies and Allied Matters Act, the court explained that CAC has the authority to reject or require changes to company names that suggest government affiliation. The judge said an average person is likely to believe the company is an agent of the Federal Government or the CBN, due to the name’s closeness to Nigeria’s legal tender, which is controlled by the CBN.

The court also warned that allowing a private firm to control the eNaira name could undermine public trust, create confusion in Nigeria’s financial system, and lead people to assume the digital currency is an official CBN product.

Justice Omotosho ordered eNaira Payment Solutions Limited to adopt a new name that does not include the word “Naira” within six weeks of a CAC directive dated December 9, 2021, noting the company failed to comply.

The suit, marked FHC/ABJ/CS/113/2021, was dismissed, and the court awarded N10 million in costs to the CBN following its counterclaim.

During proceedings, the company’s counsel, David Ityonyman, argued that the word “Naira” is not exclusive to Nigeria and should not be monopolised. He also claimed the firm had used the branding internationally for more than two decades and built goodwill before the CBN launched the eNaira platform in 2021.