The Federal High Court sitting in Abuja has made a landmark ruling, granting the Central Bank of Nigeria (CBN) sole ownership rights to the eNaira digital currency platform. This decision was made on Friday, May 22, 2026, by Justice James Omotosho, who delivered the judgment. The CBN's ownership of the eNaira platform is a significant development because it ensures the digital currency is regulated and secured.

The court's ruling is the outcome of a dispute between the CBN and a private firm, eNaira Payment Solutions Limited, which had been using the name 'eNaira' for its business. The CBN had sought to stop the company from using the name, arguing that it was misleading and could confuse the public into thinking that the company's digital currency was officially sanctioned by the government. It's worth understanding that the CBN didn't want the public to be misled about the company's digital currency.

The company, eNaira Payment Solutions Limited, had been incorporated since 2004 and had used the name 'eNaira' to transact business internationally for over 22 years before the CBN decided to launch its own digital currency with the same name. They'd been using the name for a long time. The company's counsel, Mr. David Ityonyman, argued that the source of the name 'Naira' is a community in India and that nothing stops India from having a Naira, just like countries like the U.S. and Canada use dollars. He didn't think the name should be exclusive to Nigeria.

However, the court ruled in favor of the CBN, stating that the name 'eNaira' is closely linked to the legal tender of Nigeria, which is exclusively controlled by the CBN. The court held that an average person on the street is most likely to think that the plaintiff is an agent of the Federal Government or the CBN, given the name 'eNaira'. It's likely that people wouldn't know the difference. The court also noted that the company's proposed business of creating and controlling a digital currency on their electronic payment platform would create the impression that the plaintiff has the authority of the Federal Government of Nigeria to issue and control a digital form of the Naira.

The court stressed that this would be disastrous for the Nigerian economy and would create skepticism among users, as it is not guaranteed by the Central Bank of Nigeria. They can't guarantee the digital currency's value. The court's concern is that the company's digital currency wouldn't be regulated. The company's actions could lead to economic instability.

As part of the 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 dismissed the suit marked FHC/ABJ/CS/113/2021 and awarded costs of N10 million in favor of the CBN. The CBN won't have to pay the costs. The company, on the other hand, will have to pay N10 million.

The CBN's victory in this case asserts the bank's control over the country's digital currency landscape. The eNaira is a digital version of the Nigerian currency, and the CBN's ownership of the platform ensures that the digital currency is regulated and secured. This makes the digital currency more reliable. The CBN's control also means that the digital currency won't be used for illicit activities.

The court's ruling is also a reminder of the importance of protecting intellectual property rights in Nigeria. The case highlights the need for companies to ensure that their names and trademarks don't infringe on existing rights or cause confusion among consumers. They shouldn't use names that are too similar to existing ones. Companies must protect their intellectual property. It's crucial for businesses to understand the importance of intellectual property rights.

In a statement, Justice Omotosho said:

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. The name isn't acceptable. It's misleading and suggests that the company has government support.

The case has sparked interest in the Nigerian business community, with many experts praising the court's decision. The ruling is seen as a major victory for the CBN and a significant development in the growth of Nigeria's digital currency ecosystem. The decision won't be appealed. The case is now closed. The CBN's victory is a positive step for Nigeria's economy.

  • The Federal High Court in Abuja granted the CBN sole ownership of the eNaira platform.
  • The court ruled that the name 'eNaira' is closely linked to the legal tender of Nigeria, which is exclusively controlled by the CBN.
  • The company, eNaira Payment Solutions Limited, was directed to change its name to another distinct name without the use of the word 'Naira'.
  • The court awarded costs of N10 million in favor of the CBN.
  • The case highlights the importance of protecting intellectual property rights in Nigeria. The court's decision sets a precedent for future cases.