The Nigerian government continues to embrace cryptocurrency growth while navigating a high-profile legal dispute with Binance, signaling its commitment to fostering a regulated digital asset ecosystem. Authorities maintain that recent enforcement actions aim to strengthen oversight rather than discourage industry innovation, emphasizing that most crypto businesses operate without legal challenges.
Nigeria filed an $81.5 billion lawsuit against Binance in February 2025, alleging the platform’s activities contributed to the naira’s depreciation and failed to meet tax obligations. The government accused Binance of owing $2 billion in back taxes and processing $26.5 billion in unregistered transactions. These developments followed earlier demands for $10 billion in compensation in March 2024, which officials linked to alleged forex manipulation impacting Nigeria’s currency value.
Minister of Information Mohammed Idris clarified that litigation against specific entities targets regulatory compliance rather than the broader crypto sector. New regulations introduced in December 2024 mandate stricter advertising rules and require crypto firms to obtain approval for third-party marketing campaigns. The Securities and Exchange Commission now enforces penalties up to ₦20 million ($13,400) for unregistered operations.
Despite these measures, Nigeria recorded $59 billion in crypto transactions between July 2023 and June 2024, securing its position as the world’s second-largest crypto adopter. Analysts attribute this growth to citizens using digital assets to hedge against naira volatility and bypass foreign exchange constraints. Authorities plan to tax crypto transactions to generate revenue, though experts caution this may face challenges due to widespread peer-to-peer trading.
The Binance conflict escalated with mutual bribery allegations – Nigerian officials claim the exchange offered $5 million to resolve executive detentions, while Binance counters that lawmakers requested $150 million in cryptocurrency. The exchange exited Nigeria in March 2024 but faces ongoing money laundering charges alongside its $81.5 billion lawsuit.
Regulators introduced the Accelerated Regulatory Incubation Program in 2024, requiring crypto firms to establish local offices and implement anti-money laundering protocols. These reforms seek to balance innovation with accountability as Nigeria positions itself as Africa’s digital finance leader.
Sources:
https://www.mitrade.com/insights/news/live-news/article-3-713566-20250323
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/
Nigeria’s Bold Crypto Stance: Open for Business Despite Binance Drama
https://www.mariblock.com/binance-vs-nigeria-the-saga-continues-with-a-billion-dollar-lawsuit-2/
