Court sets May 22 for eNaira dispute judgment

…as CBN seeks dismissal of suit

By Ikechukwu Nnochiri

ABUJA – On Wednesday, the Federal High Court in Abuja scheduled a judgment for May 22 in a case that challenges the Central Bank of Nigeria’s (CBN) ownership of the eNaira digital platform.

The suit, numbered FHC/ABJ/CS/113/2021, was filed by ENaira Payment Solutions Limited, a company incorporated with the Corporate Affairs Commission (CAC) in 2004.

The company argues that the CBN’s decision in 2021 to launch a pilot scheme for its digital currency and the subsequent withdrawal of its registration constitutes a serious infringement on its rights.

According to the plaintiff, it remains a valid legal entity, having filed its annual returns and paid company income tax in accordance with statutory requirements.

It also claims ownership of the “ENaira” trademark, registered in Class 36 and Class 42.

In addition to the CBN, the CAC and the Registrar General of Trade Marks were named as defendants.

The plaintiff seeks a court order preventing the apex bank from using the name “eNaira” for its product, or from infringing or threatening to infringe the plaintiff’s trademark or corporate name.

During the resumed proceedings, Justice James Omotosho adjourned the case for judgment after the parties presented their final briefs.

The CBN, represented by a legal team led by Mr. Damian Dodo, SAN, requested dismissal of the suit, arguing that it was against the national interest.

Mr. Dodo contended that the federal government reserves the right to invalidate the plaintiff’s registration, asserting that “Naira” is intrinsically linked to Nigeria as a country.

He stated that the withdrawal of the plaintiff’s registration was undertaken to “protect a national digital asset.”

“When you hear eNaira, what comes to mind? Naira is a national heritage. The registration given to the plaintiff by the CAC is against Nigeria,” Dodo, SAN, said.

The CAC, in a preliminary objection, claimed the plaintiff was erroneously registered and that the case was statute‑barred, having been filed two years after the cause of action arose.

It also argued that the plaintiff had failed to approach the Administrative Proceedings Committee (APC), a prerequisite for filing such a suit.

“Naira is the name of Nigeria’s currency. The name was inadvertently registered in favour of the plaintiff, and the CAC later wrote to the plaintiff asking it to change the name at no cost,” the Commission submitted.

Counsel for the plaintiff, Mr. David Ityonyman, urged the court to dismiss the objections and uphold his client’s case.

He explained that the plaintiff’s application was verified and approved by the CAC before its April 2004 registration, and that the Registrar‑General of Trademarks also approved the name after all conditions were met.

“No section of the Trade Marks Act provides for the withdrawal of a certificate that has been validly issued,” he added.

“A letter was written to the plaintiff in November 2021, when this case was already pending, asking it to change its name. This was done without granting the plaintiff a fair hearing. The plaintiff had a website, but because of allegations of infringement, the website was pulled down,” he said.

The plaintiff also noted that the term “Naira” originates from a community in India, and that other countries, such as the U.S. and Canada, use “dollar” without claiming the name.

“The plaintiff had used the name Naira for a long time and enjoyed substantial goodwill before 2021, when the defendant sought to take over the name,” Ityonyman said.

After hearing both sides, Justice Omotosho adjourned the case for judgment.

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