Court Adjourns Nigerian Government’s $79.5billion Suit Against Binance Company To April
The case, which was scheduled for hearing on Monday before Justice Inyang Ekwo, could not proceed as the judge went on recess after hearing other matters on the list.
The Federal High Court Abuja has adjourned the $79.5billion lawsuit filed by the Federal Inland Revenue Service (FIRS) against Binance Holdings Ltd. until April 7.
The case, which was scheduled for hearing on Monday before Justice Inyang Ekwo, could not proceed as the judge went on recess after hearing other matters on the list.
The lawsuit, marked FHC/ABJ/CS/1444/2024, was filed by FIRS against Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, alleging that the cryptocurrency exchange caused significant economic losses to Nigeria.
In its originating summons dated September 30, 2024, FIRS, through its legal counsel Chief Kanu Agabi, sought the court’s determination on whether Binance was liable to pay corporate income tax for its operations in Nigeria between 2022 and 2023.
The agency argues that under the Companies Income Tax (CIT) Act and related regulations, Binance had a “significant economic presence” in the country and was obligated to remit taxes.
FIRS is seeking multiple reliefs, including a declaration that Binance must file income tax returns for 2022 and 2023 and pay a cumulative sum of $2.001 billion in taxes.
The agency also demands additional penalties, including a 10% annual surcharge on unpaid taxes and a 26.75% interest rate per year, as determined by the Central Bank of Nigeria.
An affidavit filed by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (ONSA), claims that Binance operated in Nigeria for over six years without registration.
He further alleges that Binance executives admitted during a 2024 meeting with the Securities and Exchange Commission (SEC) that the platform had 386,256 active Nigerian users, a trading volume of $21.6 billion, and net revenue of $35.4 million in 2023.
The FIRS accuses Binance of multiple regulatory violations, including operating without a license, failing to comply with anti-money laundering laws, and offering unauthorized currency speculation services.
This lawsuit is separate from another legal battle Binance faces with the Economic and Financial Crimes Commission (EFCC), which is pursuing charges against the company in the same court before Justice Emeka Nwite.
The case will resume on April 7 when Justice Ekwo is expected to hear arguments from both parties.
