Trademark Your Business in Nigeria: Lessons from the Paystack vs Zap Africa Dispute
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When a Name Becomes a Battlefield
In March 2025, a high profile naming clash in Nigeria’s tech scene highlighted a critical legal lesson for startups. one of Nigeria's most respected fintechs, Paystack, a leading African fintech (acquired by Stripe for $200 million), launched a new product called “Zap”, Paystack’s first consumer app promising instant bank transfers. Within days, another company, Zap Africa, a cryptocurrency platform with an existing trademark, accused Paystack of infringing on its trademark and threatened legal action.
This trademark dispute underscores the often misunderstood difference between business name registration, company incorporation, and trademark registration, and why securing proper legal filings is vital to avoid brand confusion and costly conflicts.
Case Study: The “Zap” Trademark Showdown in Nigeria
Paystack’s CEO, Shola Akinlade, unveiled Zap as the company’s first consumer focused app, promising superfast bank transfers. Days later, Zap Africa, a Nigerian cryptocurrency exchange, accused them of infringing on their existing trademark. Zap Africa had operated under that name for three years and claimed exclusive rights. The clash brought questions of who owned the name "Zap" and in what context.
Paystack countered, claiming it had done due diligence, filed its own trademark application in December 2023.
The two companies clashed over:
- Who had legal ownership of the name
- Which trademark class applied
- Whether the use of the same name created customer confusion
Zap Africa insisted that Paystack's use of "Zap" caused brand dilution and confusion. Paystack countered that over 40 other businesses already use "Zap" in Nigeria, and their trademark application covered distinct categories.
Trademark vs. Business Name vs. Company Incorporation
Many founders confuse these terms. Here’s the breakdown:
1. Business Name Registration: Registering a business name with Nigeria's Corporate Affairs Commission (CAC) only prevents someone else from registering that exact name. It does not give you exclusive rights to use it in commerce. For more on this distinction, read Why Registering Your Business Name in Nigeria Is Critical for Success.
2. Company Incorporation: This gives your business legal identity (e.g., Zap Africa Ltd). It’s essential for contracts, banking, and operations, but doesn't protect your brand identity beyond your company structure. To understand how this works in practice, see The Ultimate Guide to LTD Registration in Nigeria.
3. Trademark Registration: A trademark is your brand's legal shield. It gives you exclusive rights to use a name, logo, or slogan for specific goods/services in a particular class and country. Without a trademark, you have no enforceable ownership of your brand.
“Nigerian courts have ruled that a registered trademark overrides a business name in cases of conflict. For more, read What You Need to Know About Copyright and Trademark Registration in Nigeria.”
Why Trademarking Your Business in Nigeria is Non-Negotiable
1. It protects your brand from copycats: Once your brand gains traction, competitors or opportunists may adopt a similar name. With a trademark, you can send cease-and-desist letters or take legal action to stop them. This also prevents your name from being used for fraudulent activities.
2. It preserves the brand you build: Your brand carries goodwill. If another company with the same name damages their reputation, it could affect your business. A trademark lets you legally separate and protect your identity.
3. It may prevent costly rebrands: Imagine gaining traction, then being forced to rename your company after a legal challenge. The costs in marketing, trust, and time can be devastating
4. It increases your business valuation: Trademarks are assets. Investors and acquirers see registered IP as a sign of seriousness and lower risk.
5. It helps with Expansion: Planning to grow across Africa or globally? Trademarking in Nigeria (and then in other jurisdictions or via ARIPO/OAPI) ensures brand continuity.
Common Myths That Hurt Founders
- "I registered with CAC, so I own the name." ❌ Wrong.
- "I’m too early stage to need a trademark." ❌ Wrong.
- "Trademarks are expensive and complicated." ❌ Not when you use a trusted partner.
These misconceptions are common. We debunk more of them in 5 Business Registration Myths in Nigeria and the Facts You Need to Know.
How to Trademark Your Business in Nigeria: Step-by-Step
- Name Search – Check for existing trademarks at the Nigerian IP Office.
- Determine Class – Pick the relevant NICE class that covers your product/service.
- Prepare Documentation – Business details, logo, product categories.
- Submit Application – File online or through an accredited agent.
- Publication & Opposition – If no one contests your claim, it proceeds.
- Final Approval – You receive a certificate, valid for 7 years (renewable).
For businesses operating post-registration, staying compliant is equally critical. Learn more in Top 5 Compliance Mistakes Businesses Make After Registration.
How Idara Can Help You Trademark Without Stress
At Idara, we make trademarking your business simple and affordable:
- Name availability checks
- Application drafting and filing
- Monitoring and enforcement support
Whether you're launching a startup, new product, or rebrand, we help you secure your intellectual property before someone else claims it.
Ready to protect your brand? Book a Free Consultation or Start Your Trademark Application now.
Secure the Name Before You Build the Brand
The Paystack vs Zap Africa dispute isn’t just a headline – it's a warning. You can have the best tech, team, or traction, but if you don’t legally own your name, your business is vulnerable.
Don't wait until your brand is valuable to protect it. Trademark it now, while you still can.
Want to understand how trademarks complement your business name and company filings? Read The Role of Business Registration in Protecting Your Brand Identity in Nigeria.
Conclusion
The Paystack vs. Zap Africa clash is a clear warning: without a trademark, your brand is at risk. Business name registration and company incorporation aren't enough—only a trademark gives you legal ownership. For startups, protecting your name early can prevent costly disputes, forced rebrands, and brand confusion. Secure it before someone else does.
