The Federal Government of Nigeria has initiated a new lawsuit against cryptocurrency exchange, Binance, demanding payment of ₦79.51 billion and ₦231 million—equivalent to $81.5 billion—for alleged economic losses linked to its operations in the country.
The Federal Inland Revenue Service (FIRS), acting as the plaintiff, filed the lawsuit at the Federal High Court in Abuja under case number FHC/ABJ/CS/1444/2024.
The agency is also seeking $2.001 billion in unpaid income taxes for 2022 and 2023.
Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of violating Nigerian laws by failing to register with FIRS for tax compliance and allegedly contributing to economic instability during the review period.
This latest lawsuit marks the third legal action currently pending against Binance in Nigeria, with both the FIRS and the Economic and Financial Crimes Commission (EFCC) previously charging the company with tax evasion, money laundering, and forex violations.
These cases are being heard by Justice Emeka Nwite at the Federal High Court in Abuja.
As part of the monetary claims, the government is seeking a 10 percent penalty on unpaid taxes for 2022 and 2023, along with a 26.75 percent annual interest rate—based on the prevailing Central Bank of Nigeria lending rate—from January 1, 2023, and January 1, 2024, respectively.
Allegations Against Binance
The FIRS contends that Binance deliberately concealed its business activities in Nigeria despite maintaining a strong economic presence.
The cryptocurrency exchange is accused of breaching several regulations, including the Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, and the Central Bank of Nigeria’s Regulatory Framework for Mobile Money Services.
Additionally, Binance is alleged to have violated the Significant Economic Presence (SEP) Order, signed in May 2020 by former Finance Minister Zainab Ahmed.
The SEP Order stipulates that foreign companies earning at least ₦25 million annually from digital services in Nigeria must pay taxes.
An affidavit submitted by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (NSA), states that Binance has been operating in Nigeria for over six years without proper registration.
Yusuf revealed that during a 2024 meeting with the Securities and Exchange Commission, Binance executives admitted to having 386,256 active Nigerian users, generating a trading volume of $21.6 billion and a net revenue of $35.4 million in 2023.
Furthermore, the affidavit accuses Binance of providing financial services without the necessary licenses, violating the Money Laundering Act, and engaging in unauthorized currency speculation.
The NSA also alleges that Binance continued listing and trading the Nigerian Naira on its platform despite claims that it had delisted the currency following regulatory scrutiny.
In addition, Binance is accused of refusing to provide six years’ worth of business records to Nigerian authorities, despite a Federal High Court order mandating the disclosure to FIRS through the EFCC.
Legal Proceedings
The case was brought before Justice Inyang Ekwo on February 11, 2025, with FIRS lead counsel, Kanu Agabi (SAN), present. However, Binance’s legal representatives were absent.
Agabi informed the court that previous attempts to serve Binance directly had been unsuccessful, prompting him to file a motion for substituted service.
Justice Ekwo approved the motion and ordered that Binance be served within seven days. The hearing was adjourned to March 3, 2025.
The FIRS is seeking the following reliefs:
– “A declaration that Binance is liable to pay annual corporate income tax for having a significant economic presence in Nigeria.
– “A declaration that Binance and its executives must file income tax returns for 2022 and 2023.
– “An order compelling Binance to pay $2.001 billion in taxes for 2022 and 2023.
– “Penalties, including 10 percent annual interest and a 26.75 percent CBN lending rate, until the taxes are fully paid.
– “Compensation of $79.51 billion and ₦231 million for economic losses.”
Government’s Response to Binance Executive’s Allegations
This lawsuit comes shortly after Tigran Gambaryan, a Binance executive, made allegations of bribery and corruption against the National Security Adviser, Nuhu Ribadu, and members of the House of Representatives.
Gambaryan shared his claims in a statement posted on his 𝕏 account.
However, the Nigerian government swiftly dismissed the accusations, labeling them as misinformation and defamatory.
It is worth noting that in October 2024, the Nigerian government had dropped money laundering charges against Gambaryan, who was previously facing legal action related to Binance’s operations in the country.
