Trademark DIspute

A trademark dispute between fintech giant Paystack and emerging crypto player Zap Africa has brought intellectual property protection in Nigeria to the forefront. This isn’t just another corporate disagreement; it’s a pivotal moment that could reshape how startups defend their brand identity and how seriously intellectual property (IP) rights are enforced in Nigeria’s growing innovation space. Background Zap Africa, founded in 2023, is Nigeria’s first non-custodial crypto exchange. The platform offers decentralized finance (DeFi) services, enabling users to swap and send cryptocurrencies without the involvement of a central authority. Since 2022, the company has operated under the trademarked name “Zap.” In March 2025, Paystack, one of Nigeria’s most prominent fintech companies, launched a consumer-facing payment app called “Zap by Paystack,” designed to enable instant transfers. Zap Africa’s Position Zap Africa argues that Paystack’s use of the name “Zap” infringes upon its trademark rights and creates confusion among users. The company’s CEO, Tobiloba Asu-Johnson, stated that legal steps have already been taken to protect their intellectual property. He emphasised Zap Africa’s commitment to building a trusted brand in the crypto and fintech space and expressed the company’s willingness to pursue legal action if necessary. Echoing this stance, Moore Dagogo-Hart, Zap Africa’s CTO, framed the issue as one about more than just naming rights. He described it as a fight to safeguard African innovation and prevent the brand’s identity from being diluted.​ Paystack’s Response As of the latest reports, Paystack has not publicly responded to the allegations or the legal actions initiated by Zap Africa. Attempts by media outlets to reach Paystack for comments have been unsuccessful. The dispute underscores the importance of clear trademark rights in the rapidly evolving fintech and crypto sectors. To better understand the stakes in this dispute, it is essential to examine the foundation of trademark rights in Nigeria and how existing laws and court rulings may apply. Understanding Trademark Rights In Nigeria Legal Framework In Nigeria, a trademark refers to any word, logo, phrase, symbol, or combination that distinguishes one entity’s goods from another. It plays a critical role brand identity and market exclusivity. In Nigeria, the legal framework includes the Trademarks Act, which functions as the primary law governing trademarks. The Act provides for the registration of trademarks, legal rights of trademark owners, penalties for infringement, and available remedies. There is also the Trademarks Regulations 1967 which details the procedural aspects of registration. Nigeria is also part of several international treaties which contribute to the broader landscape of Intellectual property protection in Nigeria. They include the following: Key Legal Provisions and Case Law Section 30(4) of CAMA 2020 empowers the Corporate Affairs Commission (CAC) to compel a company to change its name if it conflicts with an existing registered trademark or business name. This was reinforced in Sanofi S.A. v. Sanofi Integrated Services Ltd., where the Federal High Court upheld the trademark holder’s rights over a conflicting company name. The Trademarks Act also provides that infringement occurs when a mark identical or confusingly similar to a registered trademark is used without permission, especially if it causes consumer confusion. This was affirmed by the Supreme Court in Alliance International Ltd. v. Saam Kolo International Enterprises Ltd. Importantly, businesses without registered trademarks are not left unprotected. Under Section 3 of the Trademarks Act, the common law tort of passing off allows brand owners to claim protection if they can prove that another party’s use of their name misleads the public and causes harm to their goodwill. Application To Zap Africa Vs. Paystack In the context of Zap Africa and Paystack, several legal considerations emerge:​ Why The Zap Africa Vs. Paystack Trademark Dispute Matters The trademark dispute between Zap Africa and Paystack represents a landmark moment in Nigeria’s evolving tech and intellectual property (IP) landscape. This is arguably one of the most high-profile trademark conflicts to arise in the country’s digital ecosystem, drawing widespread attention not only because of the parties involved – Zap Africa, a rising startup, and Paystack, a major fintech player backed by global payments giant Stripe – but also because of its implications for brand protection, IP law enforcement, and the maturity of Nigeria’s startup ecosystem. At the center of this dispute is a critical legal question: does the use of a trademarked name by a larger corporation for a specific product amount to infringement when that name defines a smaller startup’s entire business identity? This challenges the way Nigeria interprets the “likelihood of confusion” standard, especially in markets where brand names and product names overlap. If Zap Africa prevails, it could establish a precedent that emphasizes the primacy of brand identity protection over functional distinctions between company names and product titles, reinforcing the statutory protections outlined in the Trademarks Act and guiding future judicial interpretations in Nigeria’s growing digital economy. Beyond brand ownership, the case also underscores the urgent need for consistent enforcement of Nigeria’s IP laws. While Nigeria has robust intellectual property statutes on paper, chiefly the Trademarks Act, enforcement has historically been inconsistent. The large scale of this dispute may force courts, registries, and regulators to re-evaluate their approach to IP enforcement, especially as the case raises complex legal questions: What constitutes “confusing similarity” between trademarks? What is the proper balance between the priority of registration versus the priority of use? What burden of proof must be met for a successful infringement claim? If the case proceeds through litigation or administrative rulings, it could help define legal standards that have so far been underdeveloped in Nigerian jurisprudence. Moreover, the Paystack-Zap Africa dispute is already having a broader effect across the startup community sparking a much-needed awareness. One persistent issue in the Nigerian tech space is that many founders delay or entirely overlook trademark registration, often viewing it as a mere formality rather than a strategic asset. Now, the ongoing debate is igniting crucial conversations among founders, developers, and incubators: “Do you really own your brand?” “Have you conducted a proper trademark search before naming your product?” “What if a well-funded