Nigeria continues to balance its ambitious crypto regulatory reforms with high-profile enforcement actions, signaling openness to digital asset innovation while addressing compliance gaps. Despite pursuing an $81.5 billion lawsuit against Binance for alleged tax evasion and economic harm, government officials emphasize that most crypto businesses operate freely under new oversight frameworks. Information Minister Mohammed Idris clarified the legal action against Binance aims to strengthen regulations rather than stifle the sector, citing ongoing operations of other platforms like Busha and Quidax under provisional licenses from the Securities and Exchange Commission (SEC).
Legal proceedings reveal Nigeria accuses Binance of facilitating $26 billion in untraceable transactions and operating peer-to-peer naira services without central bank authorization. Courts recently resumed hearings on money laundering charges against the exchange and its detained executive Tigran Gambaryan, though similar charges against a second executive were dropped following diplomatic pressure. The crackdown coincides with SEC reforms requiring crypto firms to register marketing partners and disclose transaction data to tax authorities—measures framed as consumer protection efforts.
Economic data underscores Nigeria’s strategic calculus, as the nation processes $59 billion in annual crypto transfers despite Binance exiting its market in March 2024. Analysts attribute widespread adoption to citizens hedging against the naira’s 230% inflation since 2023, though officials claim stricter oversight reduced stablecoin volumes by 38% last year. New foreign investment policies on visas and expatriate quotas aim to counter reputational damage from the Binance case, with Idris asserting Nigeria remains “actively engaged” with crypto innovators willing to comply with anti-money laundering standards.
Sources:
Witness in Nigerian trial against Binance accuses platform of contravening Central Bank rules
https://economictimes.com/news/international/us/nigeria-cracks-down-on-binance-sues-cryptocurrency-exchange-for-81-5-billion-over-tax-evasion-and-economic-losses/articleshow/118426016.cms
https://www.vanguardngr.com/2025/03/nigeria-open-to-crypto-firms-despite-80b-binance-lawsuit/
https://www.ainvest.com/news/nigeria-opens-doors-crypto-businesses-regulatory-overhaul-2503/
Nigeria Vs. Binance: Crypto Crackdown To Stabilize The Naira Is Now A Standoff
https://www.dlnews.com/articles/regulation/binance-faces-legal-ordeal-in-nigeria-amid-81b-usd-fine/
