Key Takeaways:
- For procedural review, Nigerian court delays Binance tax evasion matter to April 30, 2025.
- Citing jurisdictional concerns, Binance questions validity of court papers sent via email.
- Nigeria alleges $79.5 billion in damages related to Binance’s business and wants $2 billion in back taxes.
Due to the fact that a Nigerian court has granted a postponement in the high-profile tax evasion case against Binance, the country’s tax office will now have the opportunity to respond to the exchange’s request to overturn a previous court judgment.
Read More: Nigeria’s Cryptocurrency Taxation Plan: Unpacking the Implications and Challenges
Nigerian Court Grants Adjournment on Binance Tax Evasion Matter
Binance Holdings and two of its executives are facing tax evasion charges, and a judge in Abuja has decided to extend the trial until April 30, 2025 against them. By extending the deadline, the Federal Inland Revenue Service (FIRS) will have the opportunity to respond to Binance’s move to overturn a court order that permits court documents to be serving via email.
Due to the fact that it is registered in the Cayman Islands and does not have a physical office in Nigeria, Binance believes that such a service violates due process guidelines. It is the contention of the exchange that the FIRS did not possess the appropriate judicial leave to serve legal documents at locations outside of the country.
Read More: Binance Review 2025: Is It Legit? What Are Binance Pros and Cons?
Jurisdictional Issues on Email Service
Chukwuka Ikwuazom, Binance’s legal counsel, claimed the February 11, 2025, replaced service order should be annulled. Ikwuazom claims that the court must expressly permit service outside Nigeria; such consent was not given in this situation.
Ikwuazom informed the court, “The order for substituted service as granted… is improper and should be set aside.”
Before deciding the next procedural actions in this continuing conflict, the court has agreed to consider FIRS’s response.
Nigeria Wants $2 Billion in Taxes, Says $79.5 Billion in Losses
Binance’s legal issues in Nigeria extend beyond procedural matters. The FIRS claims the platform hasn’t paid corporate income taxes for 2022 and 2023 and is seeking an extra 10% yearly penalty on unpaid taxes.
Furthermore, the Nigerian government is suing Binance for $79.5 billion in claimed economic damages resulting from its operations. Officials say Binance has a “notable economic presence” in Nigeria and has to follow domestic tax laws even without a local office.
Particularly as Nigeria fights capital flight and currency devaluation, this case has grown increasingly important for the country’s larger plan to bring cryptocurrency platforms under more strict regulatory control.
Legal and Regulatory Crypto Stakes in Nigeria
Though unlicensed in Nigeria, Binance, the largest cryptocurrency exchange in the world, remains popular among Nigerians looking for stablecoins and digital assets under economic uncertainty.
Often bypassing traditional banking channels, the Nigerian government accuses platforms such as Binance of weakening the official naira exchange rate and permitting unauthorized capital movements via P2P markets.
