The Federal High Court in Abuja has officially admitted documents from the Federal Inland Revenue Service (FIRS) that reportedly detail its investigation into Binance’s financial transactions and alleged tax violations related to the company’s operations in Nigeria.

Justice Emeka Nwite made the ruling on Friday after FIRS counsel, Moses Idehu, submitted the documents during court proceedings. These documents, according to FIRS, support the agency’s claims that Binance failed to comply with Nigeria’s tax laws, particularly in collecting and remitting Value Added Tax (VAT) and Company Income Tax (CIT).

FIRS Strengthens Case With Internal Memos

In a significant development, FIRS presented internal memos confirming that its staff had launched a formal investigation into Binance Holdings Limited. Muftau Abdukarim, Assistant Director of the Government Business Task Office at FIRS, testified in court that the directive to investigate Binance came via a memo on March 12, 2024.

Acting promptly, Abdukarim delegated the task to his subordinate, Omoshola Babafemi, instructing him to conduct a thorough examination using TaxPro Max, a digital platform FIRS uses to track registered companies. Within a week, Babafemi completed the investigation and returned a comprehensive report.

Abdukarim subsequently sent the findings to the FIRS Litigation and Prosecution Department, formally documenting the probe’s outcome. During Friday’s hearing, he openly identified the internal memos, prompting the FIRS counsel to request their admission into court records.

Details of the Memos Reveal Investigation Scope

The documents reportedly included instructions from the Criminal Prosecution Division of FIRS, authorizing an analysis of Binance’s financial activity in Nigeria. According to one of the memos, FIRS requested “a comprehensive report of bank transaction records of Binance Holdings Ltd, showing the volume of their financial transactions related to their operations in Nigeria.”

Another memo dated March 19, 2024, confirmed the completion of the investigation and conveyed the compliance findings related to Binance’s Nigerian activities.

Although the memos remain classified from the public, their contents were summarized in court to support FIRS’s allegations that Binance offered crypto trading and remittance services to Nigerians without fulfilling statutory tax obligations.

Binance’s Legal Team Avoids Objection

Surprisingly, Binance’s legal representative, Senior Advocate of Nigeria Chukwuka Ikwuazom, did not challenge the FIRS request to admit the documents. Additionally, he chose not to cross-examine the FIRS witness, suggesting a strategic legal posture rather than immediate confrontation.

Following this development, Justice Nwite formally accepted the documents as evidence and postponed the hearing until May 20, 2025.

Origins of the Legal Dispute

The case stems from a broader crackdown on cryptocurrency platforms by the Nigerian government. Authorities accused Binance of influencing Nigeria’s volatile foreign exchange market and enabling large-scale, unregulated financial transactions.

In May 2024, FIRS amended its original lawsuit, claiming that Binance failed to remit both VAT and CIT. It cited Section 40 of the FIRS Establishment Act 2007 (as amended), which mandates service providers operating in Nigeria to collect taxes on behalf of the government. Binance, however, allegedly facilitated crypto transactions without complying with these obligations.

In addition to tax evasion charges, Binance faces separate lawsuits from the Economic and Financial Crimes Commission (EFCC) over alleged money laundering and foreign exchange violations. These parallel legal proceedings underscore the government’s intensified efforts to rein in unregulated financial activity linked to digital assets.

Executives Detained, One Escapes

The legal battle escalated dramatically when authorities detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on February 28, 2024. Both were accused of representing the company in matters that led to significant economic disruptions in Nigeria.

While Anjarwalla later escaped custody, Gambaryan remained in detention for months. He was ultimately released due to worsening health conditions and diplomatic interventions involving U.S. officials.

In June 2024, the court formally discharged both executives from the FIRS case. This decision followed Binance’s appointment of a local representative, Ayodele Omotilewa, who now faces the ongoing tax evasion trial on behalf of the company.

Government Seeks Billions in Damages

FIRS also filed a separate civil suit demanding $79.5 billion and ₦231 million from Binance for alleged economic losses caused by the company’s operations in Nigeria. The suit includes a claim for $2 billion in unpaid income taxes for the years 2022 and 2023.

Additionally, Minister of Information Mohammed Idris previously disclosed that Binance processed over $20 billion in trading volume in Nigeria during 2023 alone, fueling concerns about capital flight, market manipulation, and regulatory circumvention.

What’s Next?

With the court now admitting the FIRS documents into evidence, the stage is set for deeper judicial scrutiny of Binance’s operations in Nigeria. The next hearing on May 20, 2025, will likely focus on examining the content of the memos and determining whether the company violated any Nigerian tax laws.

The outcome could significantly impact how cryptocurrency platforms operate in Nigeria and may prompt further regulations to enforce tax compliance across the digital economy.

As the case progresses, all eyes remain on the Federal High Court to see how it will balance financial innovation with national economic interests and legal accountability.