The Federal Inland Revenue Service , Nigeria’s primary tax authority, accuses Binance of significant financial misconduct, alleging the firm failed to pay corporate income tax, improperly collected and remitted Value Added Tax , and facilitated tax avoidance through its platform. The agency estimates losses to the Nigerian economy at an extraordinary $79.5 billion, with over $2 billion in unpaid corporate taxes attributed to Binance.
The case, which has drawn global attention amid growing regulatory crackdowns on cryptocurrency platforms, was adjourned to allow the FIRS additional time to respond to a preliminary objection filed by Binance. The objection challenges the legitimacy and jurisdictional authority of the proceedings, arguing that the company lacks physical presence in Nigeria and that its services are rendered via a decentralised global infrastructure.
The court’s decision to delay the proceedings came after defence counsel urged that Binance had not been properly served with the charges, and that two of the company’s executives—Tigran Gambaryan, a US citizen, and Nadeem Anjarwalla, a dual British-Kenyan national—were not qualified to stand in for the firm. The FIRS is seeking to prosecute Binance through these senior employees, asserting they acted as representatives and decision-makers for the company in its dealings within Nigeria.
Gambaryan remains in custody in Abuja, while Anjarwalla escaped detention in late March and is now the subject of an Interpol red notice. The escape of Anjarwalla has exacerbated tensions between Nigerian authorities and Binance, with diplomatic efforts underway to facilitate his extradition. The circumstances surrounding the escape remain under investigation, and authorities have reportedly launched internal reviews into the lapse in oversight.
Binance, which has faced regulatory hurdles in several jurisdictions including the United States, the United Kingdom, and multiple European countries, is facing a dual legal challenge in Nigeria—tax evasion charges by the FIRS and separate money laundering allegations brought by the Economic and Financial Crimes Commission . The EFCC case is expected to proceed independently, with trial dates yet to be confirmed.
According to Nigerian authorities, Binance enabled anonymous trading through its peer-to-peer platform, allowing billions of naira to bypass formal banking channels and allegedly contributing to volatility in the local currency market. Financial regulators argue that the unchecked operation of such platforms has undermined fiscal stability and encouraged capital flight.
The Central Bank of Nigeria previously stated that Binance Nigeria Limited was not registered under the Companies and Allied Matters Act and had operated without regulatory approval. Despite directives issued in early 2021 restricting crypto-related activities by banks, platforms like Binance continued to facilitate trades via informal networks and third-party agents. Critics argue this created a parallel financial ecosystem that hindered the effectiveness of monetary policy.
The Nigerian government has since stepped up enforcement measures, introducing tighter surveillance on crypto exchanges and forming specialised units to monitor digital asset flows. As part of its response, authorities have demanded that Binance hand over detailed user data and transaction histories involving Nigerian users—a request the company has reportedly been slow to fully comply with, citing data privacy obligations and jurisdictional constraints.
Legal experts following the case indicate that the outcome could set a precedent for how digital asset firms operate in emerging markets, especially where regulatory frameworks are still evolving. If upheld, the FIRS case could compel other crypto platforms to register locally, maintain transparent reporting systems, and ensure compliance with national tax laws or risk similar legal action.
Binance, which has not publicly responded to the specifics of the charges, maintains that it adheres to all applicable laws in jurisdictions where it operates. The company has previously stated it is cooperating with Nigerian authorities and has launched internal investigations into the events surrounding the detention of its executives and the company’s local engagement practices.
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Cryptocurrency