Nigerian Govt Sues Binance, Seeks $79.51B for Alleged Economic Losses

The Nigerian government has filed a lawsuit against Binance, demanding $79.51 billion in damages over alleged economic disruptions linked to cryptocurrency activities.

The Federal Government of Nigeria has initiated legal proceedings against Binance Holdings Limited, seeking an extraordinary $79.51 billion and ₦231 million as compensation for purported economic damages associated with the cryptocurrency exchange’s activities in the country.

The Federal Inland Revenue Service (FIRS) has initiated a lawsuit at the Federal High Court in Abuja, aiming to recover an additional $2.001 billion in unpaid income taxes for the years 2022 and 2023.

The case identified as FHC/ABJ/CS/1444/2024 claims that Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, did not register with the Federal Inland Revenue Service for tax compliance, allegedly breaching Nigerian financial regulations.

This lawsuit represents the third legal proceeding against Binance in Nigeria. Previously, the Federal Inland Revenue Service (FIRS) and the Economic and Financial Crimes Commission (EFCC) had accused the company of tax evasion, money laundering, and foreign exchange violations in a case before Justice Emeka Nwite at Abuja’s Federal High Court.

The financial penalties in the lawsuit include a 10% charge for unpaid taxes for the years 2022 and 2023, an annual interest rate of 26.75%, aligned with the Central Bank of Nigeria’s lending rate, and further sanctions due to Binance’s failure to register its business operations in Nigeria.

The Nigerian government also claimed that Binance has been operating in the country for more than six years without proper registration, violating several financial laws.

In an affidavit, Jimada Yusuf from the Special Investigation Team at the Office of the National Security Adviser (NSA) reported that Binance executives acknowledged having 386,256 active users in Nigeria. In 2023, these Nigerian transactions resulted in a trading volume of $21.6 billion and generated net revenue of $35.4 million for Binance.

The NSA alleges that Binance failed to comply with a Federal High Court order mandating the disclosure of detailed business records from the past six years to the FIRS through the EFCC.

In the lawsuit, the FIRS is requesting a court declaration that mandates Binance to pay annual corporate income tax for its activities in Nigeria. Additionally, it seeks a court order requiring Binance and its executives to submit income tax returns for 2022 and 2023, along with an order compelling Binance to remit $2.001 billion in taxes.

Additionally, penalties will be applied, which consist of a 10% annual interest rate and a 26.75% lending rate set by the Central Bank of Nigeria (CBN), effective until all taxes are settled. The total compensation for economic damages amounts to $79.51 billion and ₦231 million.