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

Highlights:

• Nigeria sues Binance for $81.5 billion over alleged tax evasion and economic losses. 
• Nigerian authorities claim that Binance has aggravated Nigeria’s currency crisis and violated regulatory policies. 
• Binance has had more charges of money laundering and unpaid taxes for the years 2022 and 2023.

Nigeria claims that Binance has violated securities laws by not registering its cryptocurrency products and has taken legal proceedings against it at the Federal High Court of Nigeria. The case claims $79.5 billion in compensation for economic damages and $2 billion for unpaid taxes in 2022 and 2023.

The FIRS accused Binance of not registering for tax compliance with the tax laws of the Federal Republic of Nigeria. Authorities claim that the cryptocurrency exchange has a large economic impact on the country.

JUST IN: Federal Government seeks Court order for Binance to pay Nigeria 🇳🇬 $79 billion economic loss Fine and $2 billion tax. pic.twitter.com/begocHwJPl

— Nigeria Stories (@NigeriaStories) February 19, 2025

As mentioned in the legal filed documents, the FIRS is seeking to impose a penalty of 10% of the unpaid taxes as well as a 26.75% interest rate, rewind on the CBN lending rate. Some of the charges of alleged corporate fraud include failure to remit Value Added Tax arrears and corporate income tax and participation in tax evasion schemes. The Nigerian authorities accused Binance of a lack of necessary licenses and violating the Companies Income Tax Act and the Federal Inland Revenue Service Act.

Aside from the tax dispute, Binance has suffered allegations of violation of foreign exchange and the promotion of unauthorized financial activities. They accused the exchange of deepening the depreciation of the naira through the promotion of currency speculation. The National Security Adviser’s office noted that the company’s activities destabilized the Nigerian economy in many ways.

Regulatory Crackdown on Binance and Legal Proceedings

Nigeria’s lawsuit against Binance comes in the wake of increasing regulatory actions against cryptocurrency-related firms in the country. In June 2024, the Nigerian authorities arrested two Binance executives for alleged money laundering and tax fraud. The Economic and Financial Crimes Commission (EFCC) has also brought other charges of money laundering against the company, which Binance has refuted.

Binance launched its operation in Nigeria and had more than six years of operations in the country without proper registration in 2023 and had over 386,256 users. The affidavits presented by the Nigerian court reveal that during this period the trading volume originating from Nigeria was $21.6 billion and the net revenue was $35.4 million. The FIRS accused Binance of ignoring its tax demands and failing to provide the exchange’s documents for the preceding six years.

In a hearing conducted in February 2025, Binance’s attorney was not present. The lead counsel for FIRS, Kanu Agabi, sought a substitute service given the failure to serve the company. Justice Inyang Ekwo granted the motion and adjourned the case until March 3, 2025.

Economic Impact and Government Demands

According to the CBN’s assessment in May 2024, Binance’s operations led to $79.5 billion worth of economic damages over six months. Nigerian authorities say the activities of the platform increased financial instability and devalued the naira. Besides seeking to recover those alleged losses, the lawsuit also asks the court to enforce compliance with local tax laws.

Binance must pay corporate income taxes for 2022 and 2023 until full payment is made including penalties and interests, according to FIRS. The government also wants Binance to compensate for the economic damages caused by its operations. The charges are in connection with the exchange’s unauthorized dealings in the Nigerian naira, contrary to its previous claims of delisting the currency.

Binance ceased naira trading in March 2024 due to these legal issues, but the company denied the allegations. However, Nigerian authorities continue to demand responsibility from the company despite efforts to address the issues.