The Federal High Court in Abuja has ordered eNaira Payment Solutions Ltd to stop using the name “eNaira” and change it to something else without the word “Naira.”
Justice James Omotosho also granted a perpetual injunction restraining the company from parading itself as the registered owner of the trademark “eNaira.” He awarded N10 million against the company in favour of the Central Bank of Nigeria.
The judge agreed with the defendants that although the company had been registered since 2004, it had a misleading name.
“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’s patronage,” Justice Omotosho held.
He said the Corporate Affairs Commission was right to issue a directive to the company to change its name in line with the Companies and Allied Matters Act.
The judge observed that the Trademark Registry had earlier cancelled acceptance letters issued to the company regarding “eNaira” because it is a national intellectual property and a symbol and national asset of Nigeria.
“As it stands, the plaintiff has no greater legal right to the trademark than the 1st defendant,” the judge said. “A party that has no legal right cannot be entitled to an injunction.”
He noted that the “eNaira” name is so closely linked to Nigeria’s legal tender, which is exclusively controlled by the Central Bank of Nigeria. “An average person on the street is most likely to think that the plaintiff is an agent of the federal government or the Central Bank of Nigeria,” he said.
The judge warned that allowing the company to have control of the name would be like surrendering Nigerian sovereignty to a private company. He added that any digital currency with the name “eNaira” would create the impression that it is an official digital form of the Naira.
“This would be disastrous for the Nigerian economy and will create scepticism among users as it is not guaranteed by the Central Bank of Nigeria,” he ruled.
Justice Omotosho dismissed the company’s suit, declared that it was not the registered owner of the trademark “eNaira,” and ordered it to change its name immediately.
