The Nigerian Federal Government has filed a lawsuit demanding that cryptocurrency exchange Binance pay $81.5 billion for economic damages it claims were caused by the company’s operations in Nigeria, alongside $2 billion in back taxes, according to court documents reported by Reuters on Wednesday.
The government attributes Nigeria’s ongoing currency issues to Binance’s activities, and in 2024, it detained two Binance executives after crypto platforms, including Binance, became popular for trading the local naira currency.
Binance, which operates without registration in Nigeria, has yet to provide a comment. The exchange has previously stated that it is in discussions with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential historical tax liabilities.
FIRS argues that Binance has a “significant economic presence” in Nigeria and, as such, should be liable for corporate income tax. The agency is seeking a court order to force Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on the unpaid amounts. Additionally, FIRS is seeking a 26.75% interest on the outstanding taxes, in line with Nigeria’s Central Bank lending rate.
Binance is also facing four charges of tax evasion in Nigeria following a government crackdown on the cryptocurrency industry last year. These charges include non-payment of value-added tax (VAT), corporate income tax, failure to file tax returns, and aiding users in tax evasion. Binance has denied the allegations.
In March 2024, Binance announced it would cease all naira-based transactions and trading. The company is also facing separate money laundering charges brought by Nigeria’s anti-corruption agency.
