Nigeria’s Tax Evasion Case Against Binance Adjourned Amid Dispute Over Jurisdiction

In a development in the Nigeria-Binance case, Justice Inyang Edem Ekwo of the Nigerian Federal High Court has adjourned Nigeria’s Tax evasion case against Binance Holdings Limited, the world’s largest crypto spot exchange, to 30th of April 2025.

According to Reuters, Binance requested the annulment of an order that allowed court documents to be served on the company via email, so the adjournment will give Nigeria’s Federal Inland Revenue Service (FIRS) time to respond to the order.

A Nigerian court has adjourned a tax evasion case against Binance to April 30 to allow the local tax authority to respond to a request by the cryptocurrency exchange to annul an order for court documents to be served on it by email https://t.co/OWHAFCnNqK

— The Nation Nigeria (@TheNationNews) April 8, 2025

Furthermore, Binance’s lawyer, Chukwuka Ikwuazom, argued that the Nigerian tax authority did not get leave of court before serving the company court documents. So the February 11, 2025, court order is invalid and should be set aside.

In legal context, a leave of court (or leave) is permission granted by a court to undertake an action that would otherwise be prohibited or restricted by court rules or procedures.

In addition, the lawyer maintained that Binance doesn’t have a physical office in Nigeria; as a result, a leave must be obtained from the court before serving any document, which he argued that the Nigerian tax authority didn’t do.

“On the whole, the order for the substituted service as granted by the court on February 11, 2025, on Binance who is … registered under the laws of the Cayman Islands and resident in Cayman Islands is improper and should be set aside,”

Ikwuazom said.

Nigerian Government Sues Binance for $81.5B, Citing Economic Damages

Earlier, the Nigerian Government asked the Federal High Court in Abuja to direct Binance to pay the Government $79.5 billion for damages to the country’s economy caused by the crypto exchange’s unregulated activities and $2 billion in back taxes. This includes a 10% annual penalty for defaulting and 26.75% interest on unpaid taxes.

Nigeria blamed the crypto exchange for the economic woes experienced by the country which the incessant fluctuation of the Naira and other anomalies caused. The country argued that the unchecked fixing of peer-to-peer (P2P) exchange rates by Binance made the country’s currency drop steeply.

However, the company and Tigran Gambaryan, one of its executives, denied any wrongdoing and described the allegations as misrepresentations.

Some Unknown Facts- you can read the rest in the Wired article and the NPR story.

The DSS was involved in the House of Representatives matter. We met with them at their office on Friday, January 5, 2024, as a prerequisite to our meeting with the House of Representatives. They…

— Tigran Gambaryan (@TigranGambaryan) February 14, 2025

Nigeria Officially Recognizes Cryptocurrency in the New Investments and Securities Act 2025

Meanwhile, in March 2025, the Nigerian President, Asiwaju Bola Ahmed Tinubu, assented to the ISA 2025 which shed light on the official acceptance of cryptocurrencies in Nigeria.

The ISA 2025 addresses ways to empower the Nigerian capital market for efficient and transparent dealings and also protects investors’ funds.

In a major boost to capital market regulation in Nigeria, President Ahmed Bola Tinubu GCFR, has assented to the Investments and Securities Bill (ISB) 2025, which repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act 2025. pic.twitter.com/dQEvNZ9qrp

— SEC Nigeria (@SECNigeria) March 29, 2025

Additionally, the new law further recognizes the Nigerian Securities and Exchange Commission as the highest regulatory body of the Nigerian capital market.

The Act recognises virtual/digital assets and investment contracts as securities. It places Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges under the SEC’s regulatory requirements.