Nigerian Government Sues Binance for $81.5 Billion Over Tax Evasion and Economic Losses

The Nigerian government has taken legal action against Binance Holdings Limited, demanding $79.51 billion and ₦231 million in damages for alleged economic losses and unpaid taxes. The Federal Inland Revenue Service (FIRS) has also asked the court to make Binance pay an additional $2.001 billion in taxes for 2022 and 2023.

What Binance Is Accused Of

The lawsuit, filed at the Federal High Court in Abuja, claims that Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, broke Nigerian financial laws by:

1. Failing to register for tax payments in Nigeria.

2. Causing economic damage to the country through its operations.

3. Not complying with Nigerian tax laws and regulations.

This is the third legal case Binance is facing in Nigeria. In another case, FIRS and the Economic and Financial Crimes Commission (EFCC) have accused Binance of tax evasion, money laundering, and foreign exchange violations.

Government’s Financial Claims

The Nigerian government is demanding:

1. A 10% penalty for unpaid taxes in 2022 and 2023.

2. A 26.75% yearly interest rate (based on Nigeria’s Central Bank rate) starting from January 1, 2023.

3. A total compensation of $79.51 billion and ₦231 million for financial losses.

The FIRS says Binance hid its business activities in Nigeria, even though it had a large number of Nigerian users trading billions of dollars on its platform.

Binance’s Presence in Nigeria

According to a document from the Office of the National Security Adviser (NSA), Binance has been operating in Nigeria for over six years without proper registration.

In a 2024 meeting with Nigeria’s Securities and Exchange Commission (SEC), Binance executives admitted that:

1. 386,256 Nigerian users were actively trading on the platform.

2. Binance processed $21.6 billion in trades in 2023.

3. The company earned $35.4 million in revenue from Nigerian users that year.

4. The government also claims Binance:

5. Operated without licenses and required permits.

6. Violated Nigeria’s Money Laundering Act.

7. Engaged in illegal currency trading by listing the Nigerian Naira on its platform without approval.

Court Hearing and Next Steps

On February 11, 2025, the case was brought before Justice Inyang Ekwo at the Federal High Court in Abuja. While the Nigerian government’s lawyers, led by Kanu Agabi, were present, Binance’s legal team did not appear in court.

Since the government had trouble serving Binance the court papers directly, the judge approved substituted service, allowing the documents to be delivered through alternative means. The next hearing is scheduled for March 3, 2025.