The Federal Government of Nigeria has taken legal action against Binance, the world’s largest cryptocurrency exchange, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes. This lawsuit is the latest move in Nigeria’s crackdown on cryptocurrency operations within its borders.
The Nigerian government claims that Binance played a role in the country’s currency instability by providing a platform for unrestricted trading of the naira, which contributed to its depreciation. In 2024, two Binance executives were detained following concerns that cryptocurrency platforms were being used to manipulate exchange rates and bypass financial regulations.
Binance, which is not officially registered in Nigeria, has yet to publicly respond to the lawsuit. However, the company has previously stated that it is in discussions with the Federal Inland Revenue Service (FIRS) to address any outstanding tax obligations.
Court documents reveal that FIRS argues Binance has a “significant economic presence” in Nigeria and should therefore be subject to corporate income tax. The agency is pushing for a court ruling that would require Binance to settle its tax liabilities for 2022 and 2023, along with a 10% annual penalty for any unpaid taxes. Additionally, the agency seeks a 26.75% interest charge on overdue payments, based on the Central Bank of Nigeria’s current lending rate.
The lawsuit comes amid broader legal troubles for Binance in Nigeria. The exchange is already facing four charges related to tax evasion, including non-payment of value-added tax (VAT), corporate income tax, failure to submit tax returns, and allegedly facilitating tax evasion for its users.
In response to increasing regulatory pressure, Binance announced in March 2024 that it would discontinue all naira-related transactions on its platform.
Beyond tax concerns, Nigeria’s anti-corruption agency has also filed separate money laundering charges against Binance, adding to the exchange’s mounting legal challenges in the country.
