FG sues Binance $81.5bn in economic losses, back taxes

Agency Report

The Federal Government has filed a suit seeking to compel cryptocurrency exchange Binance to pay $79.5 billion for economic losses it says were caused by its operations in the country and $2 billion in back taxes, court documents showed on Wednesday, according to Reuters.

Authorities blame Binance, the world’s largest crypto exchange, for Nigeria’s currency woes and detained two of its executives in 2024 after cryptocurrency websites emerged as platforms of choice for trading the naira.

Binance, which is not registered in Nigeria, did not immediately respond to a request for comment. It has previously said it is working with the Federal Inland Revenue Service to resolve potential historic tax liabilities.

FIRS alleges in documents seen by Reuters that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts.

The revenue service is also requesting a 26.75 per cent interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.

Binance is already facing four counts of tax evasion in Nigeria after a government crackdown on the industry last year.

The charges include non-payment of value-added tax, company income tax, failure to file tax returns, and complicity in helping customers to evade taxes through its platform.