By SpringsNewsNG | February 19, 2025

The Federal Government of Nigeria has filed a lawsuit against Binance Holdings Limited, seeking $79.51 billion and ₦231 million in damages over alleged economic losses caused by the cryptocurrency exchange’s operations in the country. The government, through the Federal Inland Revenue Service (FIRS), is also demanding $2.001 billion in unpaid income taxes for 2022 and 2023.

Multiple Charges Against Binance

The lawsuit, filed under case number FHC/ABJ/CS/1444/2024, accuses Binance and its executives—Tigran Gambaryan and Nadeem Anjarwalla—of failing to register with the FIRS for tax compliance and violating multiple Nigerian financial regulations. This is the third lawsuit currently before the Federal High Court in Abuja against Binance, with additional charges of tax evasion, money laundering, and foreign exchange violations already filed by the FIRS and the Economic and Financial Crimes Commission (EFCC) before Justice Emeka Nwite.

The government is seeking penalties that include:

• Tax evasion fines
• Interest rates tied to the Central Bank of Nigeria’s (CBN) lending rate
• Additional financial sanctions

Allegations of Concealed Business Activities

According to the FIRS, Binance concealed its business activities while maintaining a significant economic presence in Nigeria. The government claims Binance violated multiple laws, including:

• Companies Income Tax Act
• FIRS Establishment Act 2007
• CBN Regulatory Framework for Mobile Money Services
• CIT Significant Economic Presence Order, which mandates foreign digital service providers earning at least ₦25 million annually in Nigeria to pay taxes.

An affidavit filed by Jimada Yusuf, a member of the Special Investigation Team in the Office of the National Security Adviser (ONSA), reveals that Binance has operated in Nigeria for over six years without registration.

During a 2024 meeting with the Securities and Exchange Commission (SEC), Binance executives allegedly admitted to having:

• 386,256 active Nigerian users
• $21.6 billion in trading volume
• $35.4 million in net revenue for 2023

The affidavit further accuses Binance of:

• Operating without required financial licenses
• Violating the Money Laundering Act
• Providing unauthorized financial services
• Facilitating currency speculation

Government Accuses Binance of Misrepresenting Operations

The National Security Adviser’s Office claims that Binance continued listing and trading the Nigerian Naira on its platform, despite previously announcing its removal due to government scrutiny. Additionally, Binance allegedly refused to disclose six years of business records to the FIRS, even after a Federal High Court ordered the company to provide them via the EFCC.

Legal Proceedings and Next Steps

On February 11, 2025, the case came before Justice Inyang Ekwo at the Federal High Court in Abuja. However, Binance’s legal team was absent, while the FIRS, represented by lead counsel Kanu Agabi, was present. Agabi informed the court that all efforts to serve Binance had failed, prompting him to file a motion for substituted service.

Justice Ekwo granted the motion, directing that service be completed within seven days. The case has been adjourned to March 3, 2025.

The FIRS is asking the court to declare that Binance is liable for corporate income tax in Nigeria, order the company to pay its outstanding taxes, and impose penalties, including annual interest and CBN lending rate charges, until the full amount is recovered. The government is also seeking compensation for the alleged economic losses.

Potential Impact on Cryptocurrency Regulation

This lawsuit marks a major crackdown on cryptocurrency exchanges operating in Nigeria, with potential implications for other digital asset platforms. The case is being closely watched as a test of the government’s ability to regulate and enforce tax compliance within the country’s fast