Nigeria: Court Urges Settlement in ₦98.5 Billion Patent Infringement Suit

The Federal High Court in Lagos has encouraged the parties in a ₦98.5 billion patent infringement lawsuit involving Enterprise Logistics Speciale Limited, the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System Plc (NIBSS), Avanage Nigeria Limited, and the Registrar of Patents and Designs to explore an out-of-court settlement before the commencement of trial.

Justice Deinde Dipeolu declined to open trial after noting that Avanage Nigeria Limited, the CBN, and the Registrar of Patents and Designs were not represented in court. The judge directed that hearing notices be served on the absent parties and urged all sides to make genuine efforts to resolve the dispute amicably.

The plaintiffs, Enterprise Logistics Speciale Limited and its Managing Director, Samuel Kolajo, are seeking approximately ₦98.5 billion in damages over the alleged infringement of their patented cash management technologies, breach of a Non-Disclosure Agreement (NDA), and losses arising from the alleged refusal to deploy their cash management solution on Nigeria’s national payment infrastructure.

At the proceedings, Tayo Oyetibo (SAN) appeared for the plaintiffs, while Olaoluwa Ale-Daniel represented NIBSS. The CBN was not represented by counsel.

Counsel for the plaintiffs informed the court that the matter was scheduled for trial and that their witness was present and ready to testify. However, Justice Dipeolu ruled that it would be inappropriate to proceed in the absence of representation for several defendants.

The judge also reminded counsel of the provisions of the Federal High Court Act, which encourage amicable dispute resolution, and directed the parties to engage in meaningful settlement discussions before the next hearing.

During the proceedings, NIBSS argued that it operates strictly under the regulatory oversight of the CBN and lacks the authority to make unilateral decisions regarding the integration of payment solutions. It also maintained that it opposed any arrangement that would create a monopoly within Nigeria’s payment system.

In response, the plaintiffs argued that they invested significant resources in developing their patented cash management technologies and are entitled to the exclusive protection and commercial exploitation of their inventions. They further contended that the technologies would improve Nigeria’s cash management system if deployed and alleged that the dispute has persisted because vested interests have prevented their implementation.

Despite the disagreement, the plaintiffs indicated that they remain open to settlement negotiations.

According to the amended statement of claim, the plaintiffs developed several cash management technologies beginning in 2011, including the Mobile Smart Deposit, Mobile Cash Sorting and Processing Device, PillarSalt Cash Supply Chain, Cash Recycling and Retail Cash Management Solution, and the PillarSalt Cash and Terminal Management System, all of which they say are protected under three patents granted pursuant to the Patents and Designs Act.

The plaintiffs allege that after disclosing details of the inventions to the defendants, the CBN introduced the Guidelines for the Registration and Operation of Bank Neutral Cash Hubs (BNCH), which they claim substantially replicate their patented technologies without authorization or compensation.

Among the reliefs sought are declarations affirming their ownership of the patented technologies, injunctions restraining further use of the inventions without consent, an order directing NIBSS to activate the PillarSalt Cash Management Solution on the Nigeria Central Switch, and an order nullifying the CBN’s BNCH Guidelines.

The plaintiffs are also seeking ₦500 million in general damages for alleged patent infringement, ₦200 million against NIBSS for the alleged breach of the 2015 Non-Disclosure Agreement, and ₦97.8 billion for losses allegedly resulting from the failure to integrate the PillarSalt solution since December 2016.

In its defence, NIBSS denied infringing the patents or breaching the NDA. It maintained that it never refused to integrate the plaintiffs’ solution but opposed granting exclusive access that would prevent competing providers with similar technologies from accessing the national payment infrastructure. NIBSS further argued that integration decisions are subject to regulatory oversight and internal corporate approvals.

Justice Dipeolu adjourned the matter until October 15 and 16, 2026, for trial if settlement efforts are unsuccessful.

Source: Arise News