The Central Bank of Nigeria (CBN) has secured the approval of the court to proceed with the launch of the Central Bank Digital Currency (CBDC) eNaira. The Abuja Federal High Court gave the approval on Thursday, clearing the way for the apex bank to unveil the digital currency despite the legal challenge over the name.
A suit seeking to stop the apex bank from using the name “eNaira” became known early this week, a few days to the launch of the eNaira scheduled for October 1st, which happened to be Nigeria’s 61st Independence Day anniversary.
The central bank had called the launch of eNaira off on Friday.
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The suit became known on Tuesday, after a cease and desist document sent to the CBN over the use of the name eNaira, surfaced online.
The notice titled: “Infringement of Trademark & Violation of Corporate Name cease and desist Notification to the Central Bank of Nigeria,” signed by Olakule Agbebi Esq for Olakule Agbebi & Co., was sent to the apex bank, warning it to desist from using the eNaira name.
The notice, which was sent on behalf of “ENAIRA PAYMENT SOLUTIONS LIMITED (RC 508500)” said the company has been incorporated since 7th April 2004, registered in class 36 and class 42.
The Federal High Court, presided over by Justice Taiwo Obayomi Taiwo, while ruling on the case tagged: ENaira Payment Solutions Limited v. Central Bank of Nigeria (FHC/ABJ/CS/113/2021), ordered that the unveiling should proceed in the national interest and economic advancement.
The plaintiff had urged the court to stop the proposed launch of the digital currency because it is a threat to his business and shows willful infringement of the eNaira trademark.
The lead counsel to CBN, D. D. Dodo (SAN), had prayed the court to strike out the Plaintiff’s Motion Exparte seeking to restrain the launch of the Defendant’s digital currency in view of its significance to the nation’s economic advancement.
While the court declined to answer the prayer of striking out the plaintiff’s Motion Exparte, it ruled that the launch of the digital currency should proceed as it will facilitate economic advancement of the country. In addition, the court expressed the view that the aggrieved company stands the chance to be adequately compensated in damages.
However, the matter, which was adjourned to October 11, 2021 for further hearing, portrays a troubling situation for the Nigerian business ecosystem. It suggests that the Nigerian government or its parastatals may obtain the courts’ blessing to infringe on business trademarks or intellectual property, as long as it is done in ‘national interest’ and for ‘economic advancement’ of the country.
For a country in need of Foreign Direct Investment (FDI), the CBN, by this action, is inadvertently sending a message capable of spooking potential investors.