The Federal Inland Revenue Service (FIRS) of Nigeria has filed a lawsuit against Binance, the world’s largest cryptocurrency exchange, seeking $81.5 billion in damages for alleged tax evasion and economic harm caused by its operations in the country. The case, which has drawn widespread attention, accuses Binance of failing to pay corporate income tax and Value Added Tax (VAT), as well as neglecting tax filing obligations.
FIRS claims Binance has a “significant economic presence” in Nigeria, making it liable for corporate taxes under Nigerian law. The agency alleges the company failed to register for tax compliance and violated key regulations, including the Companies Income Tax Act and the FIRS Establishment Act. Additionally, Binance is accused of destabilizing Nigeria’s currency, the naira, contributing to an estimated $79.5 billion in economic losses over six months.
The Nigerian government is demanding $2 billion in back taxes for 2022 and 2023, alongside penalties and interest rates of up to 26.75% on unpaid amounts. The total claim exceeds Binance’s valuation by over 30%.
The case has seen dramatic developments, including the detention of two Binance executives in 2024 and allegations that one fled custody. Binance denies wrongdoing and has challenged court procedures, arguing it does not have a physical office in Nigeria. The trial is set to continue on April 30, 2025.
This lawsuit highlights Nigeria’s increasing scrutiny of cryptocurrency platforms as the government seeks to regulate digital finance amid economic challenges. Public finance experts have criticized systemic weaknesses that may have allowed such alleged violations to occur.
