Court Dismisses eNaira Payment Solutions' Bid to Block CBN's CBDC Launch
eNaira Payment Solutions Limited's attempt to halt the Central Bank of Nigeria's (CBN) Central Bank Digital Currency (CBDC) launch has been dismissed by the Federal High Court. The company sought to prevent the CBN from using the 'eNaira' trademark, claiming legal rights to it.
In September 2021, eNaira Payment Solutions Limited filed a lawsuit, alleging potential trademark infringement and damage to their brand if the CBN launched its cryptocurrency concepts with the same name. The company also requested the CBN to notify the U.S. Patent and Trademark Office about the ongoing litigation. However, the judge ruled that granting the interim application could significantly harm Nigeria's economy and international reputation.
The CBN contended that 'eNaira' is a national asset tied to Nigeria's official digital currency and cannot be privately owned. Despite the dismissal, the IMF recommended in 2023 to strengthen eNaira adoption through government subsidies, trade payment systems, and preferential foreign trade rates for currency converter transactions. Since its launch in October 2021, the digital currency has struggled to gain traction.
The Federal High Court has dismissed eNaira Payment Solutions Limited's interim injunction request against the CBN. The IMF has advised Nigeria to bolster eNaira adoption through various measures, despite the currency's slow uptake since its launch.
