The Nigerian government continues to embrace cryptocurrency innovation while clashing with Binance over regulatory compliance. Despite ongoing legal battles with the world’s largest crypto exchange, officials reaffirm their commitment to balancing blockchain technology adoption with financial safeguards.
In a March 2025 interview with Semafor, Nigeria’s Minister of Information Mohammed Idris clarified that recent enforcement actions against Binance aim to strengthen oversight, not reject digital assets. Authorities detained Binance executive Tigran Gambaryan for eight months and filed multiple lawsuits, including a $79.5 million claim in February 2025 for alleged economic damages and a separate $10 billion demand in March 2024 over foreign exchange manipulation accusations. The Central Bank of Nigeria previously flagged $26.5 billion in transactions through unregistered Binance accounts, citing risks of money laundering and tax evasion.
Binance initially collaborated with Nigerian agencies, conducting blockchain investigation workshops for Economic and Financial Crimes Commission officers in 2023 and processing 626 law enforcement requests between 2020-2024. However, tensions escalated when the exchange delisted the Nigerian naira from its peer-to-peer platform in February 2024 amid allegations of exacerbating currency volatility. Officials restricted access to crypto platforms while maintaining Africa’s second-largest crypto economy continues to see robust adoption among its tech-savvy population.
Local entrepreneurs argue crypto remains vital for cross-border transactions due to limited alternatives. Over 380,000 active Nigerian Binance users recently faced collateral damage, losing access to promotional airdrops and P2P services during the dispute. Justice Inyang Ekwo is expected to rule in April 2025 on whether the $81.5 billion tax evasion case against the exchange will proceed to trial.
As Nigeria navigates these challenges, its young demographic drives persistent demand for digital assets—testing the government’s dual priorities of fostering innovation and preventing financial crime. Officials maintain the regulatory crackdown seeks to legitimize the crypto sector rather than stifle it.
Sources:
https://cointelegraph.com/news/binance-trained-investigators-nigeria-under-government-cooperation
https://www.mitrade.com/au/insights/news/live-news/article-3-713566-20250323
Binance drops Nigerian naira from P2P platform amid forex manipulation concerns
https://www.mitrade.com/insights/news/live-news/article-3-713566-20250323
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.dlnews.com/articles/web3/nigerian-binance-users-blocked-from-airdrops/
