Nigeria continues to navigate a complex landscape of cryptocurrency regulation, balancing stringent enforcement against Binance with openness to compliant crypto businesses. The government filed an $81.5 billion lawsuit against Binance in February 2025, alleging the exchange caused economic losses through currency manipulation and failed to pay $2 billion in taxes. This legal action emerged alongside the detention of Binance executive Tigran Gambaryan, though charges were later dropped, allowing him to seek medical treatment abroad. Amid the turmoil, authorities emphasize that the lawsuit aims to strengthen regulations rather than discourage legitimate crypto enterprises.
The Nigerian Securities and Exchange Commission overhauled crypto rules in December 2024, mandating stricter controls on advertising and third-party marketing. New tax policies now apply to crypto transactions, reflecting efforts to formalize the fast-growing sector. Despite these measures, the country maintains its position as a global crypto leader, ranking second in adoption with $59 billion in transactions recorded between July 2023 and June 2024. Stablecoins account for 40% of inflows in sub-Saharan Africa, driven by Nigerians seeking alternatives to the volatile naira and foreign exchange constraints.
Information Minister Mohammed Idris clarified that Nigeria remains open to crypto innovation, citing provisional licenses issued to platforms like Busha and Quidax as evidence of regulated growth. While criticizing illicit activities like money laundering and terrorism financing, the government is revising visa policies and tax laws to improve foreign investment flows, which dropped to $1.6 billion in 2023. Idris denied that Binance single-handedly caused the naira’s devaluation but acknowledged its role in exacerbating currency pressures through dollar-linked trading.
The Central Bank of Nigeria attributes part of the naira’s instability to crypto platforms enabling currency speculation. However, regulators are expanding collaborations with compliant firms to build transparent frameworks. As Binance ceased local operations in March 2024, domestic exchanges report increased banking access and investor confidence under revised guidelines. Analysts caution that Nigeria’s $80 billion fine against Binance could deter foreign firms if perceived as punitive, though officials stress it targets non-compliance rather than the broader crypto industry.
Sources:
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.theafricareport.com/377463/nigeria-vs-binance-what-is-behind-the-high-stakes-crypto-showdown/
https://www.ainvest.com/news/nigeria-opens-doors-crypto-businesses-regulatory-overhaul-2503/
https://www.opinionnigeria.com/despite-80b-binance-lawsuit-nigeria-is-open-to-crypto-firms-minister-idris/
