The Nigerian government has filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes, according to court documents revealed Wednesday.
Tax Evasion Allegations
The lawsuit, led by Nigeria’s Federal Inland Revenue Service (FIRS), claims Binance has a "significant economic presence" in the country and failed to pay corporate income taxes for 2022 and 2023. Authorities are also seeking a 10% annual penalty on unpaid taxes and a 26.75% interest rate based on the central bank’s lending rate.
Binance, which is not registered in Nigeria, has not responded to the lawsuit but previously stated it was cooperating with Nigerian tax authorities to resolve potential liabilities.
The Nigerian government also accused Binance of contributing to the depreciation of the naira by enabling large-scale cryptocurrency trading, which officials claim disrupts the country’s foreign exchange market. In 2024, Nigerian authorities detained two Binance executives amid a crackdown on digital asset platforms.
Nigeria Sues Binance Amid Escalating Legal Battle
Beyond the latest lawsuit, Binance already faces four tax evasion charges in Nigeria, including non-payment of value-added tax, failure to file tax returns, and allegedly facilitating tax evasion by users. Additionally, Nigeria’s anti-corruption agency has filed separate money laundering charges against the exchange, which Binance denies.
In response to mounting regulatory scrutiny, Binance announced in March 2024 that it had ceased all naira transactions in Nigeria. The outcome of this lawsuit could influence the future of cryptocurrency regulation and taxation in the country.
