Chappal Energies Nigeria Limited has launched a high-stakes legal battle at the Federal High Court in Abuja, challenging the Corporate Affairs Commission (CAC)’s directive to alter its business name, claiming it was issued without due process.
The dispute, stemming from allegations of misleading the public, highlight tensions in Nigeria’s corporate registration system and could set a precedent for resolving similar name conflicts.
Filed in 2024, the case centers on CAC’s reversal of its initial approval for Chappal Energies’ name. The company argues that the directive violates its right to a fair hearing under the Companies and Allied Matters Act (CAMA), while CAC maintains its authority to intervene based on a petition alleging intentional confusion.
Represented by Senior Advocate of Nigeria (SAN) Oluseun Awonuga, Chappal Energies said it meticulously vetted its proposed name through the CAC portal. The commission approved “Chappal Energies Nigeria Limited” on October 26, 2023, issuing a Certificate of Incorporation on January 15, 2024, after which the company began operations in the oil sector.
The conflict arose when Chappal Petroleum Development Company Limited (CPDC) lodged a complaint with CAC’s Administrative Proceedings Committee (APC), alleging that the name could mislead clients. In response, CAC issued a March 27, 2024, letter demanding a name change due to overlapping elements such as “Chappal.” Awonuga contended that his client was blindsided and cited precedents where similar names coexisted without legal challenge.
In its defense, CAC confirmed it initially approved the name but revoked it after investigating CPDC’s petition, which alleged that two CPDC directors resigned to form Chappal Energies, with one trademarking “Chappal” to mimic the original firm. The commission insisted that CAMA empowers it to mandate name changes to prevent public confusion and urged the court to dismiss the suit.
During proceedings before Justice Mohammed Umar, CAC witness Yusuf Hamza confirmed the issuance of the directive, leading to the admission of key exhibits, including the March 27 letter and Chappal’s incorporation certificate. Under cross-examination, Hamza said name disputes require committee deliberation rather than individual opinion.
The session concluded with CAC counsel securing a subpoena for a CPDC officer to produce a March 14, 2024, application letter. The case has been adjourned to February 23, 2026, for further proceedings.
