The Federal High Court sitting in Abuja yesterday granted the Central Bank of Nigeria (CBN) sole ownership rights to the eNaira digital currency platform.
Justice James Omotosho, in a judgment, made an order of perpetual injunction to restrain a private firm, eNaira Payment Solutions Limited, from further parading itself as the registered proprietor of the “eNaira” trademark.
The court held that although the company had been registered with the Corporate Affairs Commission (CAC) since 2004, its choice of a name associated with Nigeria’s sovereignty was potentially misleading.
“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,” Justice Omotosho added.
He further held that evidence before the court established that the Trademark Registry, via a letter dated November 15, 2021, had notified the company about the cancellation and withdrawal of approvals issued to it in respect of its applications for the name “eNaira” in classes 36 and 42.
The judge also noted that the company was informed that the decision was based on the fact that “eNaira is a national intellectual property and constitutes a symbol and national asset of Nigeria.”
According to the court, the private company, which instituted the action to strip the CBN of the right to ownership of the eNaira digital platform, has no greater legal right to the trademark than the apex bank, which is the 1st defendant in the matter.
“A party that has no legal right cannot be entitled to an injunction. The purport of this is that, prima facie, the plaintiff has no valid trademark to the exclusive use of the eNaira trademark,” the court held.
Moreover, Justice Omotosho stressed that under Section 852(2) of the Companies and Allied Matters Act (CAMA), the CAC may refuse to register a company with a name that suggests the establishment enjoys government patronage.
“The ‘eNaira’ name is so closely linked to the legal tender of Nigeria, which is exclusively controlled by the CBN. The plaintiff, with the name ‘eNaira,’ even though it had been incorporated since 2004, has a misleading name.
“An average person on the street is most likely to think that the plaintiff is an agent of the Federal Government or the CBN.
“The proposed business of the plaintiff, which, according to the evidence-in-chief of PW-1 is the creation and control of a digital currency on their electronic payment platform, no doubt creates the impression that the plaintiff has the authority of the Federal Government of Nigeria to issue and control a digital form of the Naira.
“A misleading name is a ground for the 3rd defendant (CAC) to direct a company to change its name,” the court added.
As part of his consequential orders, Justice Omotosho directed the plaintiff to immediately change its name to another distinct name without the use of the word “Naira.”
The court, however, dismissed the suit marked FHC/ABJ/CS/113/2021 and awarded costs of N10 million in favour of the CBN, which had also filed a counter-claim against the company.
