Federal Government of Nigeria has sued Binance, the popular cryptocurrency exchange company, to pay $79.51bn and N231m alleging economic losses caused by its operations in Nigeria.
The suit marked FHC/ABJ/CS/1444/2024 and brought before the Federal high court in Abuja, the Federal Inland Revenue Service is the plaintiff.
FG has accused Binance and its executives; Tigran Gambaryan and Nadeem Anjarwalla of not paying taxes and not registering with FIRS.
Based on that, FG is implying that none payment of tax from Binance has caused major Economic loss in the country.
Also, the plaintiff requested for $2bn for 2022/2023 income taxes.
Recall that in a recent similar case, Binance was charged with tax evasion, money laundering, and foreign exchange violations. The company was also accused of operating without license.
A recovered affidavit accuses the company of going against Nigeria’s Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence Order.
In the affidavit which was made available by a member of the Special Investigation Team, Jimada Yusuf, Binance is said to have operated for six years in Nigeria without registering with necessary authorities.
Furthermore, the affidavit accused the exchange company of non compliance when it was asked to provide detailed 6 years business record to the FIRS and EFCC. It was further stated that Binance unlawfully listed the Nigerian Naira on its exchange.
NBA revealed that the company had claimed that the Nigerian Naira was delisted from its platform when investigations were made but it never did.
“A declaration that Binance and its executives must file income tax returns for 2022 and 2023. An order compelling Binance to pay $2.001bn 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 $79.51bn and N231m for economic losses,” the FIRS seeks.
However, when the case was served in court before Justice Ekwo on February 11th, 2025, the FIRS legal counsel, Kanu Agabi (SAN) was present and filed a motion for substituted service stating that they had tried serving Binance directly to no avail.
While Binance’s counsel was absent, Justice Ekwo sustained the motion and the case was adjourned to march 3rd, 2025.
