The legal standoff between the Nigerian government and Binance, the world’s leading crypto exchange, continues with new developments. On April 7, 2025, a Nigerian court postponed a tax evasion hearing involving Binance to April 30.
The delay gives the Federal Inland Revenue Service (FIRS) more time to respond to the exchange’s request. This decision marks a turning point in a tense legal battle. Nigeria has accused Binance of causing serious damage to the national economy.
Binance Faces Legal Battle in Nigeria Amid Soaring Inflation
According to Reuters, Binance’s lawyer, Chukwuka Ikwuazom, asked the court to annul the order allowing FIRS to serve legal documents via email. He argued that Binance is a company registered in the Cayman Islands and has no physical presence in Nigeria.
Therefore, serving documents outside Nigeria without court permission violates legal procedures. His request prompted the court to postpone the hearing in order to review the validity of the service method.
“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 Cayman Islands and resident in Cayman Islands is improper and should be set aside,” Ikwuazom said.
FIRS first filed the lawsuit in February 2025. The agency claims Binance owes about $2 billion in unpaid taxes from 2022 and 2023. Beyond taxes, FIRS also demands $79.5 billion in compensation for what it describes as economic damage caused by Binance’s operations in Nigeria.
FIRS alleges that Binance’s activities have contributed to a sharp devaluation of the naira and financial instability. They claim Binance has a significant economic presence in Nigeria despite lacking an official office and, therefore, must pay corporate income taxes, penalties, and interest.
Beyond tax evasion, Nigeria arrested two senior Binance employees—Tigran Gambaryan and Nadeem Anjarwalla—in early 2024. The charges included tax fraud and money laundering.
Under mounting legal pressure and government criticism, Binance stopped supporting naira transactions in March 2024. The move was seen as a complete withdrawal from the Nigerian market. It followed Nigeria’s crackdown on crypto exchanges, which the government blamed for worsening foreign exchange shortages and weakening the national currency.
“From shutting down naira transactions to a shocking $81.5 billion lawsuit, Binance’s clash with Nigeria has been nothing short of dramatic. Detained executives, bribery allegations, and claims of economic sabotage—this legal battle is redefining how crypto operates in Africa’s biggest economy,” Business Insider Africa reported.
As economic instability grows, many Nigerians have turned to cryptocurrency as a hedge against inflation and currency devaluation. Blockchain analytics firm Chainalysis revealed that Nigerians traded approximately $59 billion worth of crypto assets in 2024.
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