By Ayomide Otitoju
The Federal Government of Nigeria is seeking $81 billion in compensation from cryptocurrency exchange Binance Holdings Limited over alleged economic losses linked to its operations in the country.
The government claims that Binance operated in secrecy despite having a significant economic presence in Nigeria. It further accuses the company of violating financial and tax regulations, including the Companies Income Tax Act, the Federal Inland Revenue Service (FIRS) Act, and the Central Bank of Nigeria’s (CBN) regulatory framework for mobile money services.
In an affidavit filed by Jimada Yusuf, a member of the special investigation team at the Office of the National Security Adviser (ONSA), it was revealed that Binance has been operating in Nigeria for over six years without proper registration.
Yusuf stated that Binance executives Tigran Gambaryan and Nadeem Anjarwalla admitted this during a 2024 meeting with the Securities and Exchange Commission (SEC). The company reportedly acknowledged, in a February 20, 2024 letter, that it had 386,256 active Nigerian users, a trading volume of $21.6 billion, and net revenue of $35.4 million in 2023.
FIRS Demands $2 Billion in Unpaid Taxes
The Federal Inland Revenue Service (FIRS), represented by lead counsel Kanu Agabi (SAN), insists that Binance is liable to pay corporate income tax in Nigeria and must file tax returns for 2022 and 2023.
The agency is seeking a court order compelling Binance to pay:
$2.001 billion in outstanding income taxes for 2022 and 2023
A 10% annual penalty on unpaid taxes
A 26.75% annual interest rate based on the CBN’s lending rate from January 1, 2023, until full payment is made
Additionally, the FIRS demands that Binance be held accountable for alleged economic losses amounting to $79.51 billion and ₦231 million.
Court Grants Motion for Substituted Service
During the latest court proceedings, Justice Inyang Ekwo granted a motion for substituted service, allowing legal documents to be served through alternative means.
The lawsuit comes amid increasing regulatory scrutiny of cryptocurrency operations in Nigeria, as authorities seek to curb financial crimes and enhance transparency in the digital asset sector.
