Nigerian government versus Binance: Lawsuit valued at over a billion dollars persists
In a landmark move, Nigeria has filed a lawsuit against the global cryptocurrency exchange Binance, seeking approximately £59.2 billion in damages. The lawsuit, filed in February 2025, accuses Binance of causing the devaluation of the Nigerian naira and claims the exchange has a "significant economic presence" in the country, making it liable for corporation tax despite not being registered in Nigeria [1][3][4][5].
The lawsuit, which includes charges of economic damages and unpaid taxes, marks a significant step in Africa towards enforcing tax and regulatory compliance on international crypto exchanges.
Key details and context of the lawsuit
The Federal Inland Revenue Service of Nigeria argues that Binance owes back taxes and damages totalling £59.2 billion, with £2 billion unpaid taxes and £57.2 billion for economic damages related to the naira’s devaluation and other factors [1][3][4][5]. Binance, however, has pushed back, stating Nigeria was never a significant market and that its total platform transaction volume in 2023 was £21.6 billion.
The jurisdictional issues surrounding Binance, which is not currently registered in any single country, complicate regulatory and tax enforcement [1]. The exchange has been registered in various countries at different times but now operates more as a decentralized global platform.
Despite the legal action, Nigeria's government supports the growth of digital assets and blockchain technology, aiming to regulate rather than ban the industry. In April 2025, the country passed the new Investment and Securities Bill, which explicitly recognizes cryptocurrencies as digital assets transferable and investable, offering a framework to regulate Virtual Asset Service Providers (VASPs) [1][4][5]. The Nigerian Information Minister Mohammed Idris emphasized that the government’s legal action against Binance targets investor protection and regulated operators, not the crypto industry outright [1][4][5].
Broader regulatory impact
The lawsuit may catalyse broader regulatory reforms across Africa to formalize crypto’s role in the economy while ensuring tax compliance and investor safeties. Previous measures like the 2021 CBN ban on crypto asset transactions by financial institutions have been followed by a pivot to controlled acceptance of digital assets, with Nigeria now opening doors to stablecoin firms under regulatory oversight [4][5].
This case in Nigeria could set a precedent for other African countries to develop formal crypto regulations that balance innovation with investor protection. Morocco, for instance, is planning to crack down on cryptocurrency users acquiring real estate abroad, while the Nigerian Securities and Exchange Commission (SEC) is reportedly working on new regulations that would enforce taxation on cryptocurrency transactions [2].
Meanwhile, other African nations are embracing blockchain technology. Tether has partnered with Guinea to integrate blockchain technology into its financial and public sector operations, and Mauritius launched the nationwide blockchain-based eVerify service in 2023 [2]. Even Ghana, which once promised to become the first blockchain-powered government, is making strides, with African blockchain talent firm Web3Bridge opening the waitlist for its 13th cohort [2].
Moreover, over half of African deals by DCG, an American Web3 VC, were made in 2024 alone, and crypto decentralized finance is expected to hit R52.3 million in South Africa [2]. VISA has also opened applications for Cohort 4 of its Africa Fintech Accelerator Program, signalling a continued interest in the continent's burgeoning fintech sector [6].
In summary, Nigeria’s litigation against Binance highlights the challenges of regulating global crypto exchanges and the nation's efforts to integrate cryptocurrencies into a clearer legal and tax framework. This case may catalyse broader regulatory reforms across Africa to formalize crypto’s role in the economy while ensuring tax compliance and investor safeties [1][3][4][5].
References: [1] Reuters (2025). Nigeria files $81.5 billion lawsuit against Binance. [online] Available at: https://www.reuters.com/business/finance/nigeria-files-81-5-billion-lawsuit-against-binance-2025-02-14/
[2] Cointelegraph (2025). Nigeria's Binance lawsuit: A pivotal moment in Africa's crypto regulation. [online] Available at: https://cointelegraph.com/news/nigeria-s-binance-lawsuit-a-pivotal-moment-in-africa-s-crypto-regulation
[3] Bloomberg (2025). Nigeria Sues Binance for $81.5 Billion in Damages. [online] Available at: https://www.bloomberg.com/news/articles/2025-02-14/nigeria-sues-binance-for-81-5-billion-in-damages
[4] The Block (2025). Nigeria's Binance lawsuit: A deep dive. [online] Available at: https://www.theblockcrypto.com/post/120838/nigerias-binance-lawsuit-a-deep-dive
[5] CoinDesk (2025). Nigeria's Binance lawsuit: What you need to know. [online] Available at: https://www.coindesk.com/business/2025/02/14/nigerias-binance-lawsuit-what-you-need-to-know/
[6] VISA (2025). Apply for Cohort 4 of our Africa Fintech Accelerator Program. [online] Available at: https://www.visa.com/africa/fintech-accelerator/apply-now.html
- The Nigerian government, through its Federal Inland Revenue Service, has accused Binance of owing back taxes and damages amounting to £59.2 billion.
- The lawsuit against Binance aims to protect investors and regulate operators in the crypto industry, not to ban cryptocurrencies outright.
- The lawsuit filed against Binance in February 2025 represents a significant step towards enforcing tax and regulatory compliance on international crypto exchanges in Africa.
- Nigeria's Investment and Securities Bill, passed in April 2025, explicitly recognizes cryptocurrencies as digital assets transferable and investable.
- The jurisdictional issues surrounding Binance, an unregistered global cryptocurrency exchange, complicate regulatory and tax enforcement.
- Other African countries like Morocco are planning to crack down on cryptocurrency users acquiring real estate abroad, while the Nigerian Securities and Exchange Commission (SEC) is reportedly working on new regulations for taxation of cryptocurrency transactions.
- Tether has partnered with Guinea to integrate blockchain technology into its financial and public sector operations, and Mauritius launched a blockchain-based eVerify service in 2023.
- African countries are increasingly embracing blockchain technology, with Ghana making strides and Web3Bridge opening the waitlist for its 13th cohort.
- Crypto decentralized finance is expected to hit R52.3 million in South Africa, and over half of African deals by DCG, an American Web3 VC, were made in 2024 alone.
- VISA has opened applications for Cohort 4 of its Africa Fintech Accelerator Program, signalling a continued interest in the continent's burgeoning fintech sector.
- The Nigeria-Binance lawsuit may set a precedent for other African countries to develop formal crypto regulations that balance innovation, personal-finance, education-and-self-development, entertainment, general-news, sports, and investment opportunities with investor protection.
