The Federal Government has asked the Federal High Court in Abuja to grant it a declarative order compelling the cryptocurrency exchange company, Binance Holdings Limited, to pay a total sum of $81.5bn evaded taxes and economic losses from its unlawful operations in the country.
According to court documents filed by Federal Inland Revenue Service, FIRS, in the suit mark: FHC/ABJ/CS/1444/2024, Binance should be ordered to pay the federal government $79.51 billion as arrears of taxes and ₦231 million for alleged economic losses caused by its operations in Nigeria.,
The federal government also asked the court to order Binance to pay $2.001 billion in income taxes for 2022 and 2023.
A declaration that the defendants are liable to pay annual corporate income tax to Nigeria for having a significant economic presence in the country.
A declaration that Binance and it’s executive ( Tigran Gambaryan and Nadeem Anjarwalla ) are liable to file income tax returns for 2022 and 2023.
A declaration that the defendants are bound by the FIRS’s income tax assessment for 2022 and 2023 due to their failures to file self assessment returns within the statutory period.
An order compelling Binance to pay $2,001,000,000 in outstanding income tax for 2022 and 2023.
The federal government also asked for further order compelling Binance to pay an additional 10 percent per annum penalty on unpaid taxes for 2022 and 2023
Also, an order mandating Binance to pay a 26.75 percent interest rate based on the prevailing CBN lending rate per annum from January 1,2023 and January 1, 2024 respectively until full payment is made.
In the lawsuit, the respondents are accused of contravening Nigerian laws, including failing to register with FIRS for tax compliance and allegedly causing economic losses to the country during
The FIRS alleges that Binance concealed its business activities in Nigeria, despite having a significant economic presence in the country.
The FG accused Binance of breaching Nigeria’s Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence (SEP) Order.
Recalled that the SEP Order was signed by former Finance Minister Zainab Ahmed and gazetted in May 2020. It defines significant economic presence as foreign companies deriving at least ₦25 million annually from digital services in Nigeria.
In its affidavit in support, the Office of National Security Advisor ,ONSA ,said that Binance unlawfully listed and traded the Nigerian Naira on its platform, even after claiming it had delisted the currency following investigations.
The affidavit also alleges that Binance refused to provide detailed business records spanning six years, despite a Federal High Court order mandating disclosure to FIRS via the EFCC
When the matter was first mentioned before Justice Inyang Ekwo on February 11, 2025 the court ordered the plaintiff to served the respondents through substituted service and adjourned the matter to March 3, 2025.