In a major development for Nigeria’s cryptocurrency landscape, Binance Holdings Limited, the world’s largest crypto exchange, has requested an out-of-court settlement in its ongoing tax evasion case with the Federal Inland Revenue Service (FIRS, now part of the Nigeria Revenue Service).
The request was made on Tuesday, March 24, 2026, at the Federal High Court in Abuja after the prosecution had already presented testimony from four witnesses. Both parties are now pursuing an amicable resolution, leading Justice Emeka Nwite to adjourn the matter until May 12, 2026, for a progress report.
Details of the Tax Evasion Charges Against Binance
Binance was re-arraigned on July 12, 2024, on four counts of tax evasion. The specific allegations include:
- Failure to register and pay Value Added Tax (VAT) on services provided in Nigeria.
- Non-payment of Company Income Tax for the 2022 and 2023 financial years.
- Failure to file necessary tax returns as required by law.
- Alleged facilitation of tax evasion by customers through its platform.
Nigeria’s tax authorities claim that Binance has a “significant economic presence” in the country despite not being formally registered, making it liable for corporate taxes. The FIRS is seeking payment of outstanding taxes plus a 10% penalty and interest calculated at 26.75% per annum based on the Central Bank of Nigeria’s lending rate.
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The $81.5 Billion Lawsuit: Economic Losses and Back Taxes
This tax evasion case is linked to a broader lawsuit in which the Nigerian government is demanding approximately $81.5 billion from Binance:
- $79.5 billion in alleged economic losses attributed to Binance’s operations, including the platform’s role in parallel forex markets, naira devaluation, and currency speculation.
- $2 billion in claimed back taxes and related liabilities.
Binance has denied the allegations and previously stated it is cooperating with Nigerian authorities to resolve any historic tax obligations.
Background: Regulatory Crackdown and P2P Trading Suspension
The dispute intensified in early 2024 when Nigerian regulators targeted crypto platforms over concerns of money laundering, terrorist financing, and disruption to the foreign exchange market. Binance suspended all naira-related transactions, including its popular Peer-to-Peer (P2P) trading feature, in March 2024. This affected millions of Nigerian users who rely on the platform for remittances, crypto trading, and inflation hedging.
Two former Binance executives were previously detained in connection with related charges, though the current FIRS case focuses primarily on tax matters.
Potential Impact of an Out-of-Court Settlement
A successful settlement could allow Binance to resume full operations in Nigeria, including the restoration of P2P naira trading. Nigeria remains one of the highest-ranking countries globally for crypto adoption, and renewed access to Binance services would significantly boost liquidity and user confidence.
For the government, a negotiated deal offers the possibility of securing substantial revenue without lengthy court battles while signaling a pragmatic approach to regulating the digital asset sector.
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What Happens Next?
With proceedings paused until May 12, 2026, all eyes are on the outcome of the settlement discussions. A resolution could set a precedent for how African governments engage with global crypto exchanges and influence the future of fintech innovation in the region.
Nigerian Binance users are encouraged to follow official announcements regarding any service restoration.
This article is for informational purposes only and does not constitute legal or financial advice.
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