The Federal Government has filed a suit seeking $79.51 billion and N231 million in compensation from Binance Holdings Limited, accusing the global cryptocurrency exchange of causing significant economic losses in Nigeria.
In a case brought before the Federal High Court in Abuja on February 11, the government claims that Binance deliberately operated in secrecy despite its substantial economic footprint in Nigeria.
The suit, which is marked FHC/ABJ/CS/1444/2024, alleges that Binance violated numerous financial and tax regulations, including the Companies Income Tax Act, the Federal Inland Revenue Service (FIRS) Establishment Act, and the Central Bank of Nigeria’s Regulatory Framework for Mobile Money Services.
The government also cited Binance’s disregard for the Significant Economic Presence (SEP) Order, which applies to foreign companies generating at least N25 million annually from digital services in Nigeria.
According to an affidavit submitted by Jimada Yusuf, a member of the National Security Adviser’s Special Investigation Team, Binance has been operating in Nigeria for over six years without proper registration.
During a 2024 meeting with the Securities and Exchange Commission (SEC), Binance executives Tigran Gambaryan and Nadeem Anjarwalla allegedly admitted to this failure to comply with registration requirements.
Further, the government claims that Binance acknowledged having 386,256 active Nigerian users, with a trading volume of $21.6 billion and net revenue of $35.4 million for the 2023 calendar year, in a letter dated February 20, 2024.
The FIRS, represented by Senior Advocate of Nigeria (SAN) Kanu Agabi, is also seeking a court order for Binance to pay outstanding corporate income taxes for the years 2022 and 2023, totaling $2 billion.
Additionally, the FIRS is requesting the imposition of a 10 percent annual penalty on unpaid taxes, as well as an interest rate of 26.75 percent based on the Central Bank of Nigeria’s lending rate, calculated from January 1, 2023, and January 1, 2024.
At the most recent court session, Inyang Ekwo, the presiding judge, granted a motion for substituted service, permitting legal documents to be served through alternative means due to Binance’s inability to be directly reached.
The case has been adjourned to March 3, marking a significant development in Nigeria’s increasing regulatory oversight of cryptocurrency platforms operating within the country.
This legal action underscores the government’s determination to enforce compliance with financial regulations and hold foreign entities accountable for economic activities affecting Nigeria.
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