Nigeria Sues Binance for $79.5 Billion in Losses, $2 Billion Tax

Nigeria has filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 billion for alleged economic losses and $2 billion in unpaid taxes.

The case, filed at the Federal High Court in Abuja, accuses Binance of tax evasion, foreign exchange violations, and contributing to the instability of the local currency, the naira.

Nigeria Sues Binance for $79.5 Billion in Losses, $2 Billion Tax

According to court documents, Nigeria’s Federal Inland Revenue Service (FIRS) claims Binance failed to register for tax compliance while operating in the country. Authorities argue that the exchange has a “significant economic presence” in Nigeria and is liable for corporate income tax under the Companies Income Tax Act and the Federal Inland Revenue Service Act.

The FIRS is demanding tax payments for 2022 and 2023, along with a 10% penalty on unpaid amounts. Additionally, the agency seeks a 26.75% interest rate on overdue taxes, based on the Central Bank of Nigeria’s lending rate. The lawsuit also accuses Binance of violating financial regulations by facilitating tax evasion through its platform. This move comes amid the US SEC pausing its lawsuit against Binance for 60 days just earlier this week.

The filing states Binance could be held responsible for financial losses linked to currency speculation and unauthorized transactions. Authorities claim the platform enabled illicit financial activities that worsened the depreciation of the naira.

Legal Action and Pending Court Proceedings

The lawsuit, registered as case number FHC/ABJ/CS/1444/2024, was heard on February 11, 2025, before Justice Inyang Ekwo. Binance’s legal representatives were not present at the hearing. The judge granted a motion for substituted service, allowing the court to serve Binance through alternative means after direct service attempts failed.

Justice Ekwo ordered the documents to be delivered within seven days and scheduled the next hearing for March 3, 2025.

The government argues that Binance’s alleged violations require strict penalties to prevent further economic harm. Binance has denied all allegations and stated that it is working with Nigerian authorities to address the concerns raised.

Detained Executives and Previous Charges

Binance executives Tigran Gambaryan and Nadeem Anjarwalla were detained in 2024 following a government crackdown on cryptocurrency platforms.

Authorities accused Binance of manipulating foreign exchange rates and laundering $35 million. Gambaryan remains in custody, while Anjarwalla reportedly escaped.

In addition to the tax-related case, Binance faces separate charges of money laundering and financial misconduct filed by Nigeria’s Economic and Financial Crimes Commission (EFCC). The company has rejected these claims, maintaining that it operates within legal frameworks in all jurisdictions.

Nigeria’s Push for Crypto Regulations and Taxation

The Nigerian government is introducing measures to regulate cryptocurrency transactions and increase tax compliance within the sector.

The Securities and Exchange Commission (SEC) is developing a framework to include eligible crypto transactions in the country’s tax system.

Authorities believe that stronger oversight will help generate revenue and prevent currency speculation. Nigeria aims to tax digital asset transactions conducted through regulated exchanges to ensure compliance with financial laws. The ongoing case against Binance is part of the government’s broader efforts to control crypto-related financial activities and maintain economic stability.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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