Nigeria Sues Binance for $81.5 Billion

The Nigerian government has filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 billion in economic damages and $2 billion in back taxes.

Demand for judgment on Binance's tax liability

The Federal Revenue Service of Nigeria (FIRS) alleges that Binance has a "significant economic presence" in Nigeria but has failed to pay its tax obligations for the years 2022 and 2023. FIRS is asking the court to force Binance to pay corporate income tax for those years, along with a 10% annual penalty on the unpaid amount. In addition, FIRS is seeking to impose a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria's lending rate.

Naira Impact Allegations

Nigerian regulators have said Binance’s activities contributed to the sharp devaluation of the naira, putting financial pressure on Africa’s largest economy.

Binance’s Response

Binance has not officially responded to the lawsuit. However, the exchange has previously said it is working with the FIRS to resolve outstanding tax issues, while also contesting the charges and claiming unfair treatment amid Nigeria’s crackdown on crypto companies.

Legal Precedent and Global Impact

The case highlights the growing regulatory pressure on crypto platforms in emerging markets. A ruling against Binance could set a precedent for how digital asset companies navigate national regulatory frameworks, potentially shaping global regulatory approaches to the industry.