Korede Abdullah in Lagos
The Federal Government has taken legal action against Binance, demanding a penalty of N79.51 billion and N231 million (equivalent to $81.5 billion) for alleged economic losses caused by its operations in Nigeria. In a fresh lawsuit filed by the Federal Inland Revenue Service (FIRS), Binance is also being asked to pay $2.001 billion in income taxes for 2022 and 2023.
The lawsuit, marked FHC/ABJ/CS/1444/2024, accuses the cryptocurrency platform and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register with Nigeria’s tax agency and violating tax compliance regulations.
“Binance concealed its business activities in Nigeria despite having a significant economic presence,” the FIRS alleged.
This latest legal battle marks the third lawsuit against Binance in Nigeria, as both the FIRS and the Economic and Financial Crimes Commission (EFCC) have previously charged the company with tax evasion, money laundering, and foreign exchange violations.
The suit claims that Binance operated in Nigeria for over six years without proper registration, offering financial services without required licenses and engaging in currency speculation.
According to Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (NSA), Binance executives admitted during a 2024 meeting with the Securities and Exchange Commission (SEC) that the platform had 386,256 active Nigerian users, with a trading volume of $21.6 billion and net revenue of $35.4 million in 2023.
The government is also accusing Binance of unlawfully listing and trading the Nigerian Naira despite claiming to have delisted it.
During a February 11, 2025, court hearing before Justice Inyang Ekwo, FIRS lead counsel Kanu Agabi, SAN, stated that Binance had failed to appear in court and had not been successfully served. Justice Ekwo granted a motion for substituted service, requiring Binance to be served within seven days, and adjourned the case to March 3, 2025.
FIRS is seeking declarations that Binance is liable for annual corporate income tax, must file income tax returns for 2022 and 2023, and must pay penalties, including 10 percent annual interest and a 26.75 percent CBN lending rate.
This lawsuit follows recent controversy, as Gambaryan accused Nigerian officials of bribery, allegations the government dismissed as misinformation and defamatory.
