The country’s information minister, Mohammed Idris, revealed to Semator that Nigeria remains open to cryptocurrency companies, even as it pursues an $80 billion lawsuit against Binance, the world’s largest crypto exchange.
The conflict between Binance and the Nigerian government revolves around legal, financial, and regulatory disputes that escalated into an $80 billion lawsuit and the detention of a Binance executive.
Nigeria is one of the top countries in crypto adoption, with millions of people using crypto to hedge against inflation, facilitate international trade, and send remittances. Binance, as the world’s biggest crypto exchange, played a major role in this growth by providing easy access to digital assets. However, the Nigerian government became increasingly concerned about the impact of Binance’s operations on the local economy.
Authorities accused Binance of contributing to economic instability, alleging that the platform was being used to manipulate the naira and worsen its devaluation. The government also claimed that Binance had evaded taxes and was facilitating money laundering and illicit financial transactions. These concerns led to a major crackdown in early 2024.
In February 2024, Nigerian authorities detained Tigran Gambaryan, a Binance compliance officer from the United States, along with Nadeem Anjarwalla, a Binance regional manager for Africa. Anjarwalla later escaped custody and fled Nigeria, while Gambaryan was held for eight months before eventually being released. The government initially charged them with money laundering, though these charges were later dropped.
In mid-February 2025, the Nigerian government filed a lawsuit against Binance, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes. This legal action drew comparisons to previous government crackdowns on large companies, such as the $5.2 billion fine imposed on telecom giant MTN in 2015.
In response to these pressures, Binance halted all transactions in Nigeria in March 2024 and denied the allegations, maintaining that it had complied with financial regulations and was being unfairly targeted. The case quickly became a major topic of discussion, raising concerns about Nigeria’s treatment of foreign businesses and the overall ease of doing business in the country.
Despite the Binance controversy, Nigeria’s Securities and Exchange Commission (SEC) continued to recognize the potential value of cryptocurrency. In August 2024, the SEC issued licenses to local crypto startups like Busha and Quidax, signaling that the government was not looking to ban crypto outright but instead sought stricter regulation. The SEC has also mandated that crypto firms open an office in the country to operate legally.
Minister Idris clarified that the lawsuit is not an attack on crypto businesses but an effort to enforce regulations. According to him, Nigeria is not shutting out crypto firms but expects them to comply with financial laws. The minister also pointed out that other crypto companies operating in Nigeria have not faced similar legal challenges, implying that Binance’s case is unique due to its alleged violations.
Idris highlighted the risks of cryptocurrency being used for terrorism financing, money laundering, and tax evasion, stressing that these are global challenges, not just Nigerian issues, and that financial regulations must be upheld to prevent illicit money flows.
The government is working to make Nigeria more business-friendly by reviewing visa rules, tax policies, and expatriate worker quotas, Minister Idris said. He denied claims that the government blames Binance for the naira’s devaluation, stating that the lawsuit is focused on tax evasion and money laundering. However, he acknowledged that Binance’s operations had contributed to currency fluctuations.
Ngozi Okonye, an executive at Busha, noted that cryptocurrency remains deeply rooted in Nigeria’s financial ecosystem. She explained that obtaining an SEC license has improved trust in her company, particularly among traditional financial institutions and skeptical users. Busha received approval-in-principle from the SEC.
