The Federal Government is demanding $81 billion in compensation from cryptocurrency company Binance Holdings Limited for alleged economic losses linked to its operations in Nigeria.
The government claims Binance operated covertly, despite having a substantial economic presence in Nigeria.
It also accuses the company of breaching various financial and tax regulations, such as the Companies Income Tax Act, the Federal Inland Revenue Service (FIRS) Act of 2007, the Central Bank of Nigeria’s regulations for mobile money services, and the Significant Economic Presence (SEP) Order, which applies to foreign companies earning at least N25 million annually from digital services in Nigeria.
In an affidavit submitted by Jimada Yusuf, a member of the special investigation team in the office of the National Security Adviser (ONSA), it is stated that Binance had been operating in Nigeria for over six years without proper registration.
Yusuf further claimed that Binance executives Tigran Gambaryan and Nadeem Anjarwalla admitted this during a meeting with the Securities and Exchange Commission (SEC) in 2024.
Binance reportedly acknowledged in a letter dated February 20, 2024, that it had 386,256 active Nigerian users, a trading volume of $21.6 billion, and a net revenue of $35.4 million for the 2023 calendar year.
The Federal Inland Revenue Service (FIRS), represented by its lead counsel Kanu Agabi (SAN), argues that Binance is required to pay corporate income tax in Nigeria and submit income tax returns for 2022 and 2023.
The FIRS is also seeking a court order for Binance to pay $2 billion in outstanding taxes for these years, along with a 10% annual penalty on unpaid taxes.
Additionally, the FIRS is requesting that Binance be held responsible for economic losses totaling $79.51 billion and N231 million.
In the most recent court session, Justice Inyang Ekwo granted a motion for substituted service, allowing legal documents to be delivered through alternative means. The case has been adjourned until March 3.
