Court Sides With Central Bank of Nigeria in eNaira Trademark Battle Against Local Firm

The Federal High Court in Abuja has ruled in favour of the Central Bank of Nigeria (CBN) in a trademark dispute with eNaira Payment Solutions Limited involving the name “eNaira”, a digital currency launched by the apex bank in 2021.

Justice James Omotosho of the Nigerian Federal High Court sided with the Central Bank of Nigeria while delivering his ruling on a motion on notice filed by the firm against the CBN and others.

The Judge stated that the Central Bank has the right to use the trademark. Therefore, the Bank can roll out its Central Bank Digital Currency (CBDC), or eNaira.

The substantive suit over the trademark dispute is adjourned to June 26, 2025, for further hearing

This ruling follows the same Federal High Court’s previous stance in 2021. The court ruled that the CBN should proceed with adopting and rolling out the eNaira. The hearing was presided over by Justice Taiwo Abayomi Taiwo.

eNaira Payment Solutions Limited Sues CBN Over Trademark Infringement

eNaira Payment Solutions Limited brought the legal challenge, claiming prior use of the eNaira trademark and alleging infringement by the CBN.

According to the plaintiff, eNaira Payment Solutions Limited, the company officially adopted the name “eNaira” before the digital currency project was made public.

In addition, the firm had secured a trademark with the Corporate Affairs Commission and relevant agencies.

The company emphasized the negative impacts the CBN’s adoption of the name would have on it, including confusion in the market, infringement on its intellectual property rights, and a negative impact on its brand identity and operations.

The firm sought injunctive relief, damages, and the revocation of the CBN’s use of the name in the “United States or any other foreign jurisdiction, including about goods, before the United States Patent and Trademark Office”.

However, the court dismissed the claims. Asserting that the roles and functions of both entities are distinct, the court further stated that it sees no evidence of deliberate brand misrepresentation by the apex bank.

It concluded that the CBN’s use of the term “eNaira” did not violate Enaira Payment Solutions Limited’s exclusive rights. It noted that the name’s use was in the public interest, given the national significance of a central bank digital currency.

Central Bank of Nigeria Launches Nigerian Digital Currency

As a leading Web3 hub in Africa, the CBN launched the eNaira in October 2021, debuting as Africa’s first central bank digital currency. The currency aims to promote financial inclusion and enable secure, low-cost digital transactions.

“The eNaira, therefore, marks a major step forward in the evolution of money, and the CBN is committed to ensuring that the eNaira, like the physical Naira, is accessible by everyone,” CBN stated.

Nonetheless, the eNaira has yet to gain widespread adoption. Suggestions suggest that the absence of public awareness of digital currencies and the wariness of government oversight might be the reasons.