Nigeria Sues Binance, Demands $81.5 Billion for Economic Losses and Back Taxes

Confidence UbaniFebruary 19, 20251 Mins read118

The Nigerian government has asked the Federal High Court in Abuja to order Binance Holdings Limited to pay $79.5 billion in damages for alleged economic losses and $2 billion in back taxes for 2022 and 2023. Court filings accuse the cryptocurrency exchange of tax evasion, regulatory violations, and contributing to the naira’s instability.

The Federal Inland Revenue Service (FIRS) filed the lawsuit, according to documents seen by media. Authorities claim Binance failed to register for tax compliance despite having a “significant economic presence” in Nigeria.

Court documents allege that Binance violated Nigerian laws, including the Companies Income Tax Act and the Federal Inland Revenue Service Act. The company is also accused of breaching the Central Bank of Nigeria’s rules for mobile money services. The government says Binance concealed its operations and enabled currency speculation, which worsened the naira’s depreciation.

The FIRS claims Binance ignored 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 government demands a 10 per cent penalty for unpaid taxes and a 26.75 per cent interest rate on overdue payments.

Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, face separate charges of money laundering and foreign exchange violations. Authorities detained both men in 2024 after accusing Binance of manipulating the naira and laundering $35 million. Anjarwalla later escaped custody.

The recent case, FHC/ABJ/CS/1444/2024, was heard on 11 February 2025 before Justice Inyang Ekwo. Binance’s legal team was absent. The judge granted a motion for substituted service after attempts to serve Binance directly failed. He ordered the documents delivered within seven days and adjourned the case to 3 March 2025. Binance denied all charges but told Reuters it was working with Nigerian authorities to resolve the dispute.

Gambaryan has insisted that Binance is not responsible for Nigeria’s economic troubles. He blamed the naira’s devaluation on government policies rather than Binance’s activities.

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