The Federal Government of Nigeria has filed a lawsuit against cryptocurrency exchange company Binance Holdings Limited, demanding $79.51 billion and ₦231 million in compensation for alleged economic losses caused by its operations in the country.
The lawsuit, filed by the Federal Inland Revenue Service (FIRS) at the Federal High Court in Abuja, also seeks an additional $2.001 billion in unpaid income taxes for 2022 and 2023.
The case, marked FHC/ABJ/CS/1444/2024, accuses Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register with the FIRS for tax compliance and allegedly violating Nigerian financial regulations.
This lawsuit marks the third legal action against Binance in Nigeria. The FIRS and the Economic and Financial Crimes Commission (EFCC) have already charged the company with tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite of the Federal High Court in Abuja.
Among the financial penalties in the lawsuit are a 10% penalty for non-payment of taxes for 2022 and 2023, a 26.75% annual interest rate, based on the Central Bank of Nigeria (CBN) lending rate and additional penalties for Binance’s failure to register its business activities in Nigeria.
The Nigerian government further alleged that Binance has been operating in the country for over six years without proper registration, violating multiple financial laws.
According to an affidavit by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (NSA), Binance executives admitted to having 386,256 active Nigerian users, a trading volume of $21.6 billion in 2023 and net revenue of $35.4 million from Nigerian transactions.
The NSA claims that Binance refused to provide detailed business records spanning six years, despite a Federal High Court order directing them to disclose the data to the FIRS via the EFCC.
In the lawsuit, the FIRS is seeking a declaration that Binance must pay annual corporate income tax for its operations in Nigeria, a court order compelling Binance and its executives to file income tax returns for 2022 and 2023 and an order for Binance to pay $2.001 billion in taxes.
Also included are penalties, including 10% annual interest and a 26.75% CBN lending rate, until all taxes are paid and a total of $79.51 billion and ₦231 million in compensation for economic damages.
