Nigeria Files Lawsuit Against Binance for $79.51 Billion in Financial Losses, Requests $2 Billion in Tax Reimbursements

The Nigerian Federal Authorities has initiated legal action against Binance Holdings Limited, seeking $81.5 billion in back taxes and financial restitution.

The lawsuit, presented to the Federal High Court in Abuja, accuses the cryptocurrency exchange of neglecting to register with Nigeria’s tax authorities and contributing to the decline of the naira.

Binance Faces Scrutiny in Nigeria—Third Lawsuit Adds to Growing Legal Challenges

As reported by Reuters on Wednesday, the lawsuit, lodged by the Federal Inland Revenue Service (FIRS) and designated as FHC/ABJ/CS/1444/2024, demands $2 billion in unpaid income taxes for the years 2022 and 2023.

Additionally, the government is pursuing $79.51 billion in damages for purported financial losses associated with Binance’s activities within the country.

FG Seeks Court Order for Binance to Pay $79 Billion Financial Loss Fine, $2 Billion in Taxes.R pic.twitter.com/vAfrHsUlzW

— Instablog9ja (@instablog9ja) February 19, 2025

Binance, along with two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, is accused of breaching Nigerian laws, including non-compliance with tax regulations and operating without proper registration. This lawsuit represents the third legal action against Binance currently pending in court.

In a separate legal matter, both the FIRS and the Economic and Financial Crimes Commission (EFCC) have also accused the company of tax evasion, money laundering, and violations of foreign exchange regulations.

The financial claims in the lawsuit include a 10% penalty for unpaid taxes, an annual interest rate of 26.75%—the current lending rate set by the Central Bank of Nigeria (CBN)—on outstanding taxes from January 2023 to January 2024, along with other statutory penalties.

The Nigerian government contends that Binance concealed its business operations despite having a significant economic footprint in the country.

The FIRS asserts that Binance has violated the Companies Income Tax Act, the FIRS (Establishment) Act 2007, the CBN’s regulatory framework for mobile money services, and the Significant Economic Presence (SEP) Order.

The SEP Order, introduced in May 2020, mandates that foreign digital service providers earning at least ₦25 million annually in Nigeria are required to pay corporate income tax.

Nigeria Claims Binance Operated Illegally for Six Years—Seeks Billions in Penalties

An affidavit from Jimada Yusuf, a member of Nigeria’s Special Investigation Team, indicates that Binance has been operating in the country for over six years without appropriate registration.

During a 2024 meeting with the Securities and Exchange Commission (SEC), Binance executives acknowledged having 386,256 active Nigerian users, $21.6 billion in trading volume, and $35.4 million in net revenue for 2023.

The affidavit accused Binance of lacking necessary licenses, breaching the Money Laundering Act, providing unauthorized financial services, and engaging in currency speculation.

Despite asserting that it had delisted the naira, the exchange allegedly continued to trade it.

The filing also claims that Binance failed to provide six years’ worth of business records despite a court order.

On February 11, 2025, the Federal High Court, presided over by Justice Inyang Ekwo, granted a motion for substituted service after Binance’s legal team did not appear. The case has been postponed to March 3.

The FIRS is also seeking a ruling that Binance is liable for corporate income tax due to its substantial economic presence.

Nigeria is preparing to revise regulations to tax crypto trading and digital transactions, aiming to enhance government revenue.#Nigeria #CryptoTaxhttps://t.co/CiARf7T14T

— Cryptonews.com (@cryptonews) February 18, 2025

This lawsuit adds to Binance’s increasing legal challenges in Nigeria, where it now faces four tax-related allegations.

While Binance has claimed to be cooperating with regulators, it has not yet responded to the latest lawsuit.

Looking ahead, Nigeria’s unprecedented $81.5 billion claim against Binance raises pertinent questions: When decentralized platforms operate across borders, who is responsible for the consequences of their disruption?

More importantly, as regulators globally struggle to tax and trace the shadow economy of cryptocurrency, Nigeria’s assertive approach—linking industry activity to currency devaluation—may motivate other inflation-affected nations to leverage tax regulations against offshore platforms.

The post Nigeria Sues Binance for $79.51B in Financial Damages, Seeks $2B in Back Taxes appeared first on Cryptonews.