The Nigerian Government’s Legal Battle with Binance Holdings Limited
In a bold move, the Nigerian government has taken legal action against cryptocurrency exchange company Binance Holdings Limited. The government filed a lawsuit at the High Court in Abuja, seeking $79.51 billion and ₦231 million for alleged economic damages caused by Binance’s activities in Nigeria.
The lawsuit, brought by the Federal Inland Revenue Service (FIRS), also demands an additional $2.001 billion in income taxes for the years 2022 and 2023. This legal action marks the third lawsuit that Binance is facing in the trial court.
According to the court filing, Binance, along with two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of violating Nigerian laws by not registering with the FIRS for tax purposes and allegedly causing economic harm to the nation during the specified period.
Furthermore, the FIRS and the Economic and Financial Crimes Commission have accused Binance of tax evasion, money laundering, and foreign exchange infractions before Justice Emeka Nwite of the FHC in Abuja.
The financial claims in the lawsuit include a ten per cent penalty for unpaid taxes for the years 2022 and 2023, along with a yearly interest rate of 26.75%. The FIRS alleges that Binance obscured its business operations in Nigeria despite maintaining a significant economic footprint.
Additionally, the government accuses Binance of violating several Nigerian laws, 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.
The affidavit filed by Jimada Yusuf, a member of the Special Investigation Team from the National Security Adviser’s Office, reveals that Binance has been operating in Nigeria for over six years without proper registration. During a meeting in 2024 with the Securities and Exchange Commission, Binance’s executives acknowledged having a significant user base in Nigeria, with substantial trading activity and net income.
The affidavit also accuses Binance of operating without the necessary licenses and permits, failing to comply with the Money Laundering Act, providing unapproved financial services, and engaging in currency speculation.
