Nigeria’s Information Minister, Mohammed Idris, has stated that the government’s ongoing lawsuit against Binance is not part of a wider crackdown on cryptocurrency firms operating in the country.
“This is part of the effort to strengthen our laws, not to cripple anybody. We are ensuring that no one comes and operates without regulation,” Nigerian Information Minister Mohammed Idris told the international news outlet, Semafor, in a wide-ranging interview.
“There are other companies operating in the crypto sector in Nigeria, you don’t see them [facing charges].”
🇳🇬REGULATION | Nigerian Crypto Exchange, Quidax, Receives Provisional Operating License from SEC Nigeria
With the license granted by the Nigerian SEC, Quidax is now able to collaborate with banks and other financial institutions, subject to the Central Bank of Nigeria’s… pic.twitter.com/4gPpLyJi4z
— BitKE (@BitcoinKE) August 29, 2024
As we covered in February 2025, the Nigerian government filed a lawsuit against Binance, demanding $79.5 billion in compensation for ‘economic losses’ and $2 billion in unpaid taxes.
🇳🇬REGULATION | Nigeria Sues #Binance for $81.5 Billion in Economic Losses and Unpaid Taxes
The Federal Inland Revenue Service (FIRS) claims that Binance has a ‘significant economic presence’ in Nigeria.https://t.co/1VQGMEuClQ @FIRSNigeria @binance @BinanceAfrica pic.twitter.com/VaSjVCjnlu
— BitKE (@BitcoinKE) February 20, 2025
The case, submitted to the Federal High Court in Abuja, Nigeria, alleges that the cryptocurrency exchange operated in Nigeria without a license and failed to adhere to tax regulations.
During the trial which began in February 2025, the Federal Inland Revenue Service (FIRS) of Nigeria argues that any entity with a ‘significant economic presence’ in Nigeria, whether directly or indirectly, is required to register for tax purposes in the country.
🇳🇬REGULATION | #Nigeria Court Begins Hearing Tax Evasion Case Against @binance
Binance is accused of providing services – including crypto trading, remittance, and asset transfers – to Nigerians without deducting the required VAThttps://t.co/CcqN9558U7 @FIRSNigeria pic.twitter.com/CUuBuZtE9x
— BitKE (@BitcoinKE) February 21, 2025
Binance however, argues that a non-Nigerian company without a significant economic presence in Nigeria is not obligated to file tax returns, subscribe for tax assessment, or make tax payments.
According to Information Minister Idris, the government was ‘really concerned‘ about the potential use of crypto in financing terrorism, money laundering, and tax evasion.
“It is not just Nigeria. Internationally, it’s also important to address illicit financial flows.
You can’t have a huge amount of transactions that do not meet the operations of financial dealers,” Idris said.
Idris said that the government is actively working to eliminate barriers for investors by implementing reforms to enhance the ease of doing business. These efforts include reviewing visa regulations, tax policies, and expatriate worker quotas to create a more investor-friendly environment.
Idris denied that Binance was being held responsible for the devaluation of the Naira, which was driven by factors including the government’s decision to float the currency in 2023. He maintained that the charges against Binance focused on tax evasion and money laundering, although, he said, ‘Binance contributed‘ to the currency’s devaluation.
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