Nigeria Sues Binance for $79.5B in Economic Losses and $2B in Back Taxes
Nigeria is suing cryptocurrency exchange Binance for $81.5 billion, accusing the firm of damaging its already struggling economy, according to a Reuters report on Wednesday. Nigeria is seeking $79.5 billion in damages for economic losses the government attributes to the cryptocurrency exchange’s operations, along with $2 billion in unpaid taxes.
Authorities have blamed Binance for contributing to the depreciation of the naira, with crypto platforms becoming a primary avenue for trading the local currency. In 2024, the government detained two Binance executives as part of its crackdown on the industry.
Nigerian authorities claim that Binance has been operating as an unregistered business in the country since at least 2019, catering to locals seeking to exchange their naira for stablecoins and other cryptocurrencies. However, the company ceased all naira-denominated trading last year after Nigeria intensified its crackdown on the crypto industry.
The naira has tumbled more than 70% against the U.S. dollar since 2023, data from research firm Markets Forces Africa shows. Meanwhile, Nigeria’s annual inflation rate stood at 24.48% in January, according to the Nigeria National Bureau of Statistics’ data.
Although Binance is not registered in Nigeria, the Federal Inland Revenue Service (FIRS) asserts that the exchange has a “significant economic presence” in the country and is therefore subject to corporate income tax.
The agency is seeking a court order mandating Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on outstanding amounts. Additionally, FIRS is requesting a 26.75% interest rate on unpaid taxes, in line with the Central Bank of Nigeria’s lending rate.
Binance, which has yet to comment on the lawsuit, previously stated that it was working with Nigerian authorities to address potential tax liabilities. The exchange was already facing four tax evasion charges, including non-payment of value-added tax and corporate income tax, failure to file tax returns, and allegedly enabling tax evasion through its platform.
