Nigeria Reaffirms Openness to Cryptocurrency Firms Amidst Legal Dispute with Binance

Nigeria’s Information Minister, Mohammed Idris, has reiterated the nation’s openness to cryptocurrency businesses, even as it pursues an $80 billion lawsuit against Binance, the world’s largest cryptocurrency exchange.

The conflict between Nigerian authorities and Binance centers on legal, financial, and regulatory disputes, leading to the substantial lawsuit and the detention of senior Binance executives. Nigeria, recognized as a leading country in cryptocurrency adoption, has millions using digital currencies to hedge against inflation, facilitate international trade, and send remittances. Binance has played a significant role in this growth by providing easy access to digital assets.

However, the Nigerian government has raised concerns about Binance’s impact on the local economy, accusing the platform of contributing to economic instability. Authorities allege that Binance has been used to manipulate the naira, exacerbating its depreciation, and claim the company has evaded taxes while facilitating money laundering and illicit financial transactions. These issues prompted a major crackdown in early 2024.

In February 2024, Nigerian authorities detained Binance’s compliance officer, Tigran Gambaryan, and regional manager for Africa, Nadeem Anjarwalla. Anjarwalla later escaped custody and fled Nigeria, while Gambaryan was held for eight months before being released. Initially charged with money laundering, these accusations were subsequently dropped. By mid-February 2025, the Nigerian government filed a lawsuit seeking $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes. This legal action mirrors previous government crackdowns on large corporations, such as the $5.2 billion fine imposed on telecom giant MTN in 2015.

In response to these pressures, Binance ceased all trading activities in Nigeria in March 2024, denying the allegations and maintaining that it complies with financial regulations. The case has sparked discussions about Nigeria’s treatment of foreign businesses and the overall ease of conducting business in the country. Despite the controversy, Nigeria’s Securities and Exchange Commission (SEC) continues to recognize the potential value of cryptocurrencies. In August 2024, the SEC issued licenses to local cryptocurrency startups like Busha and Quidax, indicating that the government does not intend to ban cryptocurrencies entirely but seeks stricter regulations. The SEC also requires cryptocurrency companies to establish offices in the country to operate legally.

Minister Idris clarified that the lawsuit is not an attack on cryptocurrency businesses but an effort to enforce regulations. He emphasized that Nigeria remains open to cryptocurrency companies, provided they comply with financial laws. The minister also highlighted the risks of cryptocurrencies being used for terrorism financing, money laundering, and tax evasion, noting that these are global challenges requiring the maintenance of financial regulations to prevent illicit financial flows.

To make Nigeria more business-friendly, the government is reviewing visa rules, tax policies, and expatriate quotas. Minister Idris denied claims that the government blames Binance for the naira’s devaluation, stating that the lawsuit focuses on tax evasion and money laundering. However, he acknowledged that Binance’s operations have contributed to currency fluctuations.

Ngozi Okonye, an executive at Busha, noted that cryptocurrencies remain entrenched in Nigeria’s financial ecosystem. She explained that obtaining an SEC license enhances trust in companies, especially among traditional financial institutions and skeptical users. Busha has received approval from the SEC, further integrating it into the regulated financial landscape.