Nigeria sues Binance for $81.5 billion over economic damage, unpaid taxes
On Wednesday, February 19, the Federal Government of Nigeria filed a lawsuit against Binance, one of the biggest cryptocurrency exchanges in the world, claiming that it caused $79.5 billion in economic losses and owes $2 billion in back taxes.
The Nigerian government says that Binance is responsible for the country’s currency problems. In 2024, after local websites were used to trade the naira currency, two of Binance’s leaders were detained by authorities.
Binance, which isn’t officially registered in Nigeria, has not yet replied to the lawsuit but previously said it’s working with Nigeria’s Federal Inland Revenue Service (FIRS) to fix any past tax issues.
The FIRS claims Binance has a “big economic presence” in Nigeria and should pay corporate income taxes. The agency is asking the court to make Binance pay taxes for the years 2022 and 2023, with an extra 10% penalty on the amount owed each year. They also want Binance to pay 26.75% interest on unpaid taxes, based on Nigeria’s Central Bank lending rate.
Last year, Nigeria started investigating Binance for tax evasion, with four counts against the company, including not paying value-added tax (VAT), company income tax, failing to file tax returns, and helping customers avoid taxes through its platform.
Binance has been fighting the charges. In March 2024, the company stopped all transactions and trading in naira (Nigeria’s local currency). On top of these issues, Binance is also facing separate charges for money laundering from Nigeria’s anti-corruption agency.
