Nigerian Government Sues Binance for $79.5 Billion Over Alleged Tax Evasion and Naira Instability

The Nigerian government has filed a lawsuit against Binance Holdings Limited, demanding $79.5 billion in damages for alleged economic losses and $2 billion in back taxes for 2022 and 2023. The case, filed at the Federal High Court in Abuja, accuses the cryptocurrency exchange of tax evasion, regulatory violations, and contributing to the naira’s instability.

Government’s Allegations Against Binance

According to court documents, the Federal Inland Revenue Service (FIRS) claims Binance failed to register for tax compliance despite maintaining a “significant economic presence” in Nigeria. The government alleges that Binance violated multiple laws, including the Companies Income Tax Act and the Federal Inland Revenue Service Act. Authorities also argue that Binance breached the Central Bank of Nigeria’s regulations for mobile money services and concealed its operations to evade oversight.

Officials accuse Binance of enabling currency speculation, which they claim contributed to the naira’s depreciation. The FIRS asserts that the company disregarded tax obligations under Nigeria’s Significant Economic Presence (SEP) Order, which mandates taxation for foreign companies earning over ₦25 million annually from digital services. The lawsuit demands a 10 percent penalty for unpaid taxes and a 26.75 percent interest rate on overdue payments.

Separate Charges of Money Laundering and Forex Violations

In addition to the tax-related lawsuit, Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, face separate charges of money laundering and foreign exchange violations. Nigerian authorities detained both executives in 2024, accusing Binance of manipulating the naira and laundering $35 million. However, Anjarwalla later escaped custody, intensifying scrutiny of the case.

Court Proceedings and Binance’s Response

The lawsuit, filed under case number FHC/ABJ/CS/1444/2024, was heard on February 11, 2025, before Justice Inyang Ekwo. Binance’s legal team was absent from the proceedings. The judge granted a motion for substituted service after attempts to serve Binance directly failed. He ordered the documents to be delivered within seven days and adjourned the case to March 3, 2025.

Binance has denied all charges but stated in a comment to Reuters that it is working with Nigerian authorities to resolve the dispute. Gambaryan, one of the detained executives, has maintained that Binance is not responsible for Nigeria’s economic troubles. He argued that government policies, rather than Binance’s activities, are to blame for the naira’s depreciation.

Potential Implications for the Cryptocurrency Market

The Nigerian government’s aggressive stance against Binance signals heightened regulatory scrutiny of cryptocurrency exchanges operating in the country. This lawsuit could set a precedent for how Nigeria handles foreign digital platforms that operate within its financial ecosystem. If the court rules in favor of the government, it could prompt further regulatory actions against other international crypto firms with operations in Nigeria.

As the legal battle unfolds, the case is being closely watched by investors, policymakers, and the global cryptocurrency community. The March 3 hearing is expected to provide further clarity on Binance’s legal standing in Nigeria and the potential financial repercussions it may face.