A Federal High Court in Abuja, on Friday, rejected an interim restraining motion filed by eNaira Payment Solutions Limited against the Central Bank of Nigeria’s (CBN) use of the “eNaira” trademark.
The company had sought an order of interim injunction restraining the CBN (first defendant) from further asserting any rights to the eNaira mark in the United States or any other foreign jurisdiction, including in relation to goods, before the United States Patent and Trademark Office—pending the hearing and determination of its substantive suit in Nigeria.
However, Justice James Omotosho, who delivered the ruling on a motion on notice filed by the firm against the CBN and others, stated that he will consider the “balance of convenience” in line with relevant laws.
He explained that the balance of convenience refers to which party would suffer more harm if the application were granted or refused.
The judge noted that the CBN had already written to the U.S. Trademark Office, asserting that the eNaira is a national asset of Nigeria.
“The action of the CBN is preservatory,” he said.
Omotosho further stated that the Nigerian economy would suffer significantly if the interim application were granted, with potentially severe damage to the country’s interests.
The judge concluded that the plaintiff’s application would harm Nigeria’s economy and tarnish its international reputation.
“Today, the court rules that the CBN would be placed in an irreversible position if this application is granted,” he added.
“The plaintiff’s application fails,” the judge ruled.
He held that the plaintiff had not presented a compelling case, and that the application was refused for lacking merit.
The court subsequently adjourned the matter to June 26 for the hearing of the substantive suit.
The CEO of E-Naira Payment Solutions Limited, Jonathan Kenneth Adoke, had approached the court seeking an order directing the CBN to immediately cease any communication or engagement with the United States Patent and Trademark Office (USPTO) or any other foreign authority regarding the eNaira trademark, pending the determination of the suit before the Nigerian court.
The firm also requested: “An order of interim injunction directing the Central Bank of Nigeria to notify the United States Patent and Trademark Office of the ongoing litigation concerning the eNaira trademark in Nigeria and its sub judice status, pending the hearing and determination of the substantive suit.”
Additionally, the plaintiff sought an order of interim injunction directing the USPTO, the Trademark Trial and Appeal Board, or any other relevant U.S. authority to halt proceedings or decision-making related to the eNaira mark until the suit in Nigeria is concluded.
E-Naira Payment Solutions Limited also asked the court to mandate the CBN to refrain from representing the term “eNaira” as a sovereign asset or legal tender of Nigeria in any jurisdiction and to stop any further attempts to prevent its registration of the eNaira name or trademark in any country.
The plaintiff claimed he holds legal rights to the eNaira trademark and that his application for its registration was accepted by the trademark registry.
In response, CBN’s legal team argued that the eNaira trademark cannot be owned by a private entity, as it represents a national asset, having been launched as a digital currency by the Federal Republic of Nigeria.
Nigeria’s Central Bank Digital Currency, the eNaira, was launched in October 2021 as part of the country’s efforts to drive financial inclusion.
The digital version of the naira was also expected to promote the CBN’s cashless policy.
