Nigeria has launched a legal battle against Binance, demanding $79.5 billion in compensation for alleged economic damages and $2 billion in back taxes. The lawsuit, filed today, accuses the global cryptocurrency exchange of playing a central role in Nigeria’s financial struggles, particularly the depreciation of the naira, and failing to meet its tax obligations.
The Nigerian government claims that Binance became a popular platform for foreign currency trading, which contributed to economic instability. Authorities have pointed to Binance as a significant factor in the naira’s decline in value, with the Federal Inland Revenue Service (FIRS) accusing the company of evading taxes.
Despite not being officially registered in Nigeria, Binance is said to have a “significant economic presence” in the country, according to FIRS. The agency is now demanding that the company pay corporate income taxes for 2022 and 2023, along with a 10% penalty on the outstanding amounts. Additionally, court documents reveal that the Nigerian government is seeking 26.75% interest on the unpaid taxes, in line with the Central Bank of Nigeria’s lending rate.
Binance faces four separate tax evasion charges, including the failure to file tax returns, neglecting to pay value-added tax (VAT) and corporate tax, and allegedly assisting users in evading taxes.
While Binance has previously stated its commitment to complying with Nigerian regulations, the company has not made any public comment on the latest lawsuit. In March 2024, Binance suspended all transactions involving the naira following the government’s intensified crackdown on cryptocurrency platforms, which officials blamed for financial instability in the country.
In addition to the tax case, Binance is also facing separate money laundering charges from Nigeria’s anti-corruption agency, charges the exchange has denied.
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