Nigerian Court Urges Settlement in N98.5 Billion Patent Dispute

The Federal High Court in Lagos has strongly encouraged all parties involved in a N98.5 billion patent infringement lawsuit to make genuine efforts toward an amicable resolution. The case pits Enterprise Logistics Special Limited and its Managing Director, Samuel Kolajo, against the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System (NIBSS), and Avanage Nigeria Limited.

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The judge also reminded the lawyers of the provisions of the Federal High Court Act encouraging courts to facilitate amicable settlement of disputes and urged the parties to explore that option in good faith.

The plaintiffs are seeking substantial damages for the alleged infringement of their patented cash management technology. They also claim breach of a Non-Disclosure Agreement (NDA) and losses incurred due to the failure to deploy their solution on Nigeria’s national payment infrastructure. Tayo Oyetibo, a Senior Advocate of Nigeria, represents the plaintiffs.

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The payment system operator functions under the regulatory oversight of the CBN and lacks the authority to take unilateral decisions regarding access to its infrastructure. He also maintained that NIBSS could not support any arrangement that would create a monopoly, describing that as the central issue in dispute.

Trial judge Deinde Dipeolu declined to commence the trial, noting the absence of legal representation for the CBN, Avanage Nigeria Limited, and the Registrar of Patents and Designs. He postponed the proceedings, ordering that hearing notices be served on the absent defendants before the next court session. The judge reminded the involved lawyers of the court's mandate to facilitate dispute settlement.

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The plaintiffs had invested substantial resources in developing technologies protected by valid patents and were entitled to the exclusive enjoyment of those inventions under the law. He said the innovations, if deployed, would significantly improve Nigeria’s cash management system and contribute to the country’s economy.

NIBSS, represented by Olaoluwa Ale-Daniel, argued that as a payment system operator under CBN oversight, it lacks the authority for unilateral decisions regarding infrastructure access. NIBSS also stated it could not support arrangements creating a monopoly, which it identified as the central issue. Oyetibo countered that the plaintiffs invested heavily in patented technologies and are entitled to exclusive enjoyment, asserting that their innovations would significantly benefit Nigeria's economy. He cited "selfish interests" of individuals in authority as the main obstacle to resolution, though he confirmed the plaintiffs remain open to settlement.

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According to the senior advocate, the major obstacle to resolving the dispute is the “selfish interests” of certain individuals in positions of authority, adding that Nigeria had been deprived of the economic benefits of the plaintiffs’ innovations. He nevertheless told the court that the plaintiffs remained open to settlement.