ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has filed a lawsuit at the Federal High Court in Abuja, seeking to compel cryptocurrency exchange Binance Holdings Limited to pay $79.51 billion and N231 million in damages for alleged economic losses linked to its operations in Nigeria.
The case, brought by the Federal Inland Revenue Service (FIRS) and marked FHC/ABJ/CS/1444/2024, also demands that Binance settle $2.001 billion in unpaid income taxes for 2022 and 2023.
Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of violating Nigerian laws, including failure to register with FIRS for tax compliance and allegedly contributing to economic losses within the country.
This marks the third lawsuit currently pending against Binance in the Federal High Court.
In a separate case, the FIRS and the Economic and Financial Crimes Commission (EFCC) have charged the company with tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite.
The financial claims include a 10% penalty for unpaid taxes in 2022 and 2023, as well as a 26.75% annual interest rate aligned with the prevailing Central Bank of Nigeria lending rate from January 1, 2023, and January 1, 2024.
According to the FIRS, Binance concealed its business activities despite having a significant economic presence in Nigeria.
The Federal Government also accuses the firm of breaching the Companies Income Tax Act, the FIRS (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the Significant Economic Presence (SEP) Order.
The SEP Order, signed by former Finance Minister Zainab Ahmed and gazetted in May 2020, defines significant economic presence as foreign companies generating at least N25 million annually from digital services in Nigeria.
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An affidavit filed by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser, states that Binance has operated in Nigeria for over six years without registration.
During a 2024 meeting with the Securities and Exchange Commission, Binance executives Anjarwalla and Gambaryan reportedly admitted to having 386,256 active Nigerian users, a trading volume of $21.6 billion, and net revenue of $35.4 million for 2023.
The affidavit further accuses Binance of operating without the necessary licenses and permits, violating the Money Laundering Act, offering unauthorized financial services, and engaging in currency speculation.
According to the National Security Adviser (NSA), Binance unlawfully listed and traded the Nigerian Naira on its platform, despite previously claiming to have delisted the currency following regulatory investigations.
The document also alleges that Binance refused to provide six years’ worth of detailed business records, despite a Federal High Court order directing the company to disclose the information to the FIRS through the Economic and Financial Crimes Commission (EFCC).
During a court session on February 11, 2025, before Justice Inyang Ekwo, the FIRS—represented by lead counsel Kanu Agabi—appeared, but Binance’s legal team was absent.
Agabi informed the court that efforts to serve Binance directly had been unsuccessful and requested permission for substituted service.
Justice Ekwo granted the motion and ordered that the substituted service be completed within seven days.
The case was subsequently adjourned to March 3, 2025.
The FIRS is seeking a court declaration that: “Binance is liable to pay annual corporate income tax for having a significant economic presence in Nigeria.
“A declaration that Binance and its executives must file income tax returns for 2022 and 2023. An order compelling Binance to pay $2.001 billion in taxes for 2022 and 2023.
“Penalties, including 10% annual interest and a 26.75% CBN lending rate, until the taxes are fully paid. Compensation of $79.51 billion and ₦231 million for economic losses.”