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- Nigerian court delays Binance tax case to April 30.
- Binance challenges the legal method of document delivery.
- Nigeria demands over $80 billion in penalties and taxes.
A Nigerian court has postponed the country’s major tax evasion case against Binance. The new date for the hearing is April 30. This delay allows Nigeria’s Federal Inland Revenue Service (FIRS) time to reply to Binance’s legal request.
The crypto exchange asked the court to cancel a previous order allowing officials to send it legal documents by email. Binance’s lawyer, Chukwuka Ikwuazom, told the court that the tax authority had not followed the correct legal process.
According to him, FIRS did not get court permission to serve legal documents outside Nigeria. This exchange is based in the Cayman Islands and has no office in Nigeria. The lawyer argued that using email to deliver official court papers was not valid in this case.
$2 Billion Demanded in Unpaid Taxes
The court previously okayed the delivery of the email on February 11, 2025. Binance now seeks to have that order revoked. Until then, the tax evasion case cannot proceed.
The government of Nigeria has made significant financial complaints against Binance. The government accuses the exchange of causing the collapse of the local currency, the naira. Officials say traders used Binance’s platform as a prominent location for illicit naira trades. Authorities contend that this caused mass economic harm.
Binance is asked to remit $79.5 billion to compensate for what Nigeria claims are economic losses. It also wants $2 billion in back taxes owed in 2022 and 2023. These are for company income taxes. The tax agency also asks Binance to remit a 10% penalty on any overdue amount annually.
Binance Engages with Nigerian Tax Authorities
They are among Nigeria’s broader crackdown on cryptocurrency exchanges. In 2024, the government arrested two Binance officials during an inquiry. The government accuses these platforms of helping their customers evade official exchange rates and harming the economy.
Binance made no public statement on this matter in recent times. It had previously indicated that it was engaging in communication with Nigerian tax authorities. It reported that it was working to clear any past tax liabilities.
Although the exchange isn’t legally registered in Nigeria, it boasts millions of users there. Nigeria’s tax agency asserts that Binance enjoys a “significant economic presence” in Nigeria. That presence, it asserts, makes it liable for local levies.
The court’s ruling later this month might establish a precedent in law. It could influence how Nigeria treats overseas digital businesses. If the court decides in the tax agency’s favor, additional multinational companies might be subject to similar actions.
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