The Federal High Court in Abuja has admitted documents from the Federal Inland Revenue Service (FIRS) allegedly detailing its investigation into Binance’s financial operations in Nigeria.
Justice Emeka Nwite admitted the documents as evidence during a hearing on Friday, following a request by FIRS counsel, Moses Idehu.
According to an earlier report by Nairametrics, the FIRS amended its lawsuit on May 17, 2024, accusing Binance of failing to collect and remit key taxes—specifically Value Added Tax (VAT) and Company Income Tax (CIT)—as required by Section 40 of the FIRS Establishment Act (2007, as amended).
Allegations Against Binance
The FIRS claims Binance provided cryptocurrency services to Nigerians—such as the buying, selling, transferring, and remittance of crypto assets—without deducting or remitting the appropriate VAT.
On June 14, 2024, the court discharged two individuals—Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla, who is currently on the run—from the FIRS tax evasion suit, after Binance appointed Ayodele Omotilewa as its Nigerian representative.
Omotilewa, appearing on behalf of the company, denied the allegations, allowing the court to proceed with the trial.
FIRS Investigation Details
During the hearing, Muftau Abdukarim, Assistant Director at FIRS’ Government Business Task Office, testified that on March 12, 2024, his department received a memo from the Litigation and Prosecution Department instructing them to investigate Binance Holdings Ltd.
Abdukarim stated that he immediately assigned the task to a subordinate, Omoshola Babafemi, who used the FIRS’s TaxPro Max platform to conduct the investigation.
“On March 19, 2024, Babafemi submitted a memo with the investigation findings,” Abdukarim said, adding that he forwarded the report to the Litigation and Prosecution Department that same day.
The internal memos—reviewed by Nairametrics—included directives for a detailed investigation into Binance’s financial transactions and compliance status in Nigeria. Excerpts from the memos read:
“I have been assigned by the Head of the Criminal Prosecution Division (FIRS) to coordinate the investigation on this matter and also request your office to generate bank transaction records of Binance Holdings Ltd…”
“Sequel to your memo dated March 12, 2024, our office has conducted a comprehensive search on the TaxPro Max platform regarding Binance Holdings Ltd… and we hereby forward the report of our findings.”
FIRS counsel Moses Idehu urged the court to admit these documents as evidence. Binance’s lawyer, Chukwuka Ikwuazom (SAN), did not object or cross-examine the witness. The court admitted the documents and adjourned the case until May 20, 2025.
Context and Background
The Federal Government previously accused Binance of contributing to the instability of Nigeria’s foreign exchange market. Minister of Information, Idris Mohammed, claimed the platform recorded over $20 billion in transactions in Nigeria in 2023 alone.
On February 28, 2024, two senior Binance executives were detained in Nigeria. While Anjarwalla later escaped, Gambaryan was released after several months due to health concerns and diplomatic intervention.
In addition to the FIRS case, Binance also faces a separate lawsuit by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, tax evasion, and FX violations.
FIRS is also demanding $79.5 billion in damages, ₦231 million in penalties, and $2 billion in income tax for the years 2022 and 2023.
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