By Jemimah Wellington, JKNewsMedia Reporter
ALLEGATIONS OF financial misconduct have intensified as the Nigerian government pursues $81 billion in compensation from Binance Holdings Limited.
The lawsuit, filed at the Federal High Court in Abuja, accuses the cryptocurrency exchange of tax evasion, regulatory breaches, and operating without proper registration despite maintaining a significant economic presence in the country.
Court documents reveal that the Federal Inland Revenue Service (FIRS) is demanding $2 billion in unpaid corporate income tax for 2022 and 2023.
Additionally, it seeks a 10 percent penalty per year on outstanding taxes, alongside an annual interest rate of 26.75 percent based on the Central Bank of Nigeria’s (CBN) lending rate.
Nigeria’s government also claims economic losses of $79.51 billion and N231 million.
In an affidavit filed by Jimada Yusuf, a member of the special investigation team in the Office of the National Security Adviser, Binance allegedly operated in Nigeria for over six years without registration.
Yusuf further stated that company executives Tigran Gambaryan and Nadeem Anjarwalla admitted this during a 2024 meeting with the Securities and Exchange Commission (SEC).
A letter dated February 20, 2024, reportedly confirmed that Binance had 386,256 active Nigerian users, a trading volume of $21.6 billion, and net revenue of $35.4 million in 2023.
The FIRS, represented by lead counsel Kanu Agabi (SAN), argues that Binance must comply with Nigerian tax laws, including the Companies Income Tax Act and the Significant Economic Presence (SEP) Order, which applies to foreign firms earning at least N25 million annually from digital services.
The case, marked FHC/ABJ/CS/1444/2024, is being heard before Justice Inyang Ekwo.
The Nigerian government maintains that Binance’s operations violate the Federal Inland Revenue Service (Establishment) Act 2007 and the Central Bank of Nigeria’s Regulatory Framework for Mobile Money Services.
However, should the court rules in favour of the government, Binance could face severe financial penalties and restrictions on its Nigerian operations.
