The Federal High Court in Abuja has adjourned the suit filed by the Federal Inland Revenue Service (FIRS) against Binance Holdings Ltd, demanding a staggering 79.5 billion US dollars over alleged economic losses caused by the company’s operations in Nigeria. The case, which was set to be heard before Justice Inyang Ekwo, has been postponed until April 7, 2025.

The legal battle, marked as FHC/ABJ/CS/1444/2024, involves Binance, along with its executives Tigran Gambaryan and Nadeem Anjarwalla. The FIRS had filed the case in September 2024, seeking answers to four key questions regarding Binance’s tax obligations in Nigeria.

The FIRS argued that, according to Nigeria’s tax laws, Binance and its executives should be liable for annual corporate income tax due to their significant economic presence in the country during 2022 and 2023. In its suit, the agency is seeking a declaration that Binance is required to pay income taxes for these years, along with additional penalties for failing to do so.

Among the nine reliefs sought by the FIRS, the agency requested a court order demanding Binance pay a cumulative $2.001 billion in unpaid taxes for 2022 and 2023. Additionally, the FIRS is pushing for a 10% annual penalty for the non-payment of taxes and a 26.75% interest rate, in line with the Central Bank of Nigeria’s prevailing lending rate, until the full amount is paid.

The case stems from an investigation by the FIRS and other regulatory bodies, including the Office of the National Security Adviser (ONSA), which found that Binance had been operating in Nigeria for over six years without proper registration. According to an affidavit filed by Jimada Yusuf of the ONSA, Binance’s executives admitted during a 2024 meeting with the Securities and Exchange Commission (SEC) that the company had 386,256 active Nigerian users, with a trading volume of $21.6 billion and net revenue of $35.4 million in 2023.

Yusuf further accused Binance of several infractions, including offering financial services without licenses, violating money laundering regulations, and engaging in unauthorized currency speculation. The FIRS also claims that Binance engaged in Virtual Asset Service Provider (VASP) activities without the necessary registration with Nigerian regulatory agencies.

In addition to the lawsuit before Justice Ekwo, Binance is facing separate charges brought by the Economic and Financial Crimes Commission (EFCC) over related issues, with hearings set before Justice Emeka Nwite of the same court.

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