Kehinde Fajobi
The Federal Government has asked the Federal High Court in Abuja to compel cryptocurrency platform Binance to pay a total of $81.5 billion in penalties and damages for alleged economic losses suffered by Nigeria.
The Federal Inland Revenue Service (FIRS), in a lawsuit marked FHC/ABJ/CS/1444/2024, is also seeking $2.001 billion in back taxes for 2022 and 2023.
Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, stand accused of violating Nigerian laws by failing to register with FIRS and allegedly causing financial harm to the country.
The lawsuit adds to ongoing legal battles against Binance, which is also facing tax evasion, money laundering, and foreign exchange violation charges filed by FIRS and the Economic and Financial Crimes Commission (EFCC).
FIRS claims Binance concealed its business activities in Nigeria despite maintaining a significant economic presence.
The agency cited breaches of the Companies Income Tax Act, the FIRS (Establishment) Act 2007, and Central Bank of Nigeria (CBN) regulations on mobile money services.
An affidavit filed by Jimada Yusuf, a member of the National Security Adviser’s Special Investigation Team, stated that Binance has operated in Nigeria for over six years without registration.
According to Yusuf, Binance executives disclosed in a 2024 meeting with the Securities and Exchange Commission (SEC) that the platform had 386,256 active Nigerian users, a $21.6 billion trading volume, and net revenue of $35.4 million in 2023.
The affidavit also alleges Binance violated the Money Laundering Act, provided unauthorised financial services, and engaged in currency speculation.
It further claims the company failed to submit six years’ worth of business records, despite a court order mandating their disclosure.
In court on 11th February 2025, FIRS’s lead counsel, Kanu Agabi (SAN), informed Justice Inyang Ekwo that attempts to serve Binance directly had failed.
The judge granted a motion for substituted service, giving FIRS seven days to notify the company. The case was adjourned to 3rd March 2025.
FIRS is asking the court to declare Binance liable for corporate income tax and order the company to:
Pay $2.001 billion in back taxes for 2022 and 2023.
Cover penalties, including a 10% annual fine and a 26.75% CBN lending rate.
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Compensate Nigeria with $79.51 billion and ₦231 million for economic losses.
The fresh lawsuit follows a recent social media post by Gambaryan accusing National Security Adviser Nuhu Ribadu and members of the House of Representatives of bribery and corruption—claims the government dismissed as misinformation and defamation.
In October 2024, Nigerian authorities had dropped money laundering charges against Gambaryan.