₦98.5 Billion Patent Dispute: Court Pushes CBN, NIBSS Towards Settlement
A Federal High Court in Lagos has directed parties involved in a substantial ₦98.5 billion patent infringement lawsuit to actively pursue an amicable resolution. The case pits Enterprise Logistics Speciale Limited against the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System Plc (NIBSS), and Avanage Nigeria Limited.
Justice Deinde Dipeolu issued the directive, opting to postpone the commencement of trial due to the absence of legal representation for some of the defendants. The plaintiffs, Enterprise Logistics Speciale Limited and its Managing Director, Samuel Kolajo, are seeking significant damages for alleged infringement of their patented cash management technology, a breach of a Non-Disclosure Agreement, and substantial losses stemming from the alleged refusal to integrate their solution into Nigeria’s national payment infrastructure.
During the proceedings, Tayo Oyetibo (SAN), alongside Jessica Adeola-Ajayi and Esther Bawa, represented the plaintiffs. Olaoluwa Ale-Daniel appeared for NIBSS. However, the Central Bank of Nigeria, Avanage Nigeria Limited, and the Registrar of Patents and Designs were not represented in court.
Mr. Oyetibo informed the court that the matter was scheduled for trial and that the plaintiffs’ witness was present and prepared to testify. Justice Dipeolu, however, ruled that hearing notices must first be issued and served on the absent defendants to ensure fairness and due process. The judge also highlighted the Federal High Court Act’s provisions that empower courts to encourage the amicable resolution of disputes, urging the parties to engage in genuine efforts to settle the matter out of court.
Counsel for NIBSS stated that as a payment system operator functioning under the regulatory purview of the CBN, NIBSS could not unilaterally make decisions. He further argued that NIBSS opposed the creation of a monopoly, which he suggested was a core element of the dispute. Mr. Oyetibo countered by emphasizing the plaintiffs’ significant investment in developing patented inventions, which he alleged the defendants sought to infringe upon. He asserted that these innovations rightfully belonged to the second plaintiff and that the law entitled him to their exclusive enjoyment.
In their amended statement of claim, the plaintiffs detailed the development of several cash management technologies between 2011 and the present, aimed at modernising Nigeria’s cash handling system and reducing the circulation of physical cash within the banking sector. These inventions include Mobile Smart Deposit, Mobile Cash Sorting and Processing Device, PillarSalt Cash Supply Chain, Cash Recycling and Retail Cash Management Solution, and PillarSalt Cash and Terminal Management System. The plaintiffs confirmed that these technologies are protected by three patent certificates issued under the Patents and Designs Act.
The plaintiffs allege that after sharing details of their innovations with the defendants, the CBN introduced guidelines for the registration and operation of Bank Neutral Cash Hubs. They contend that these guidelines substantially replicated their patented processes without their consent or compensation. Consequently, they are seeking a court declaration of their exclusive ownership of the patented technologies and an injunction restraining the defendants from using them without written consent. Furthermore, they aim to compel NIBSS to activate their PillarSalt Cash Management Solution on the Nigeria Central Switch within 30 days and to nullify the CBN’s Bank Neutral Cash Hubs guidelines.
The monetary claims are substantial: ₦500 million in general damages for alleged patent infringement against the first and second defendants (CBN and Avanage Nigeria Limited), ₦200 million against NIBSS for alleged breach of a 2015 Non-Disclosure Agreement, and a staggering ₦97.8 billion for alleged losses incurred due to NIBSS’s refusal to integrate the PillarSalt solution since December 2016.
NIBSS, in its amended defence, has denied infringing any patent or breaching the Non-Disclosure Agreement. It argued that the plaintiffs’ pursuit of exclusive rights would prevent other operators with similar solutions from accessing the national payment infrastructure, which NIBSS contends would constitute an unlawful restraint of trade and foster a monopoly.
Justice Dipeolu has adjourned the matter to October 15 and 16, 2026, for trial, should settlement negotiations prove unsuccessful.
