Nigeria Sues Binance for Massive Economic Losses and Taxes

Nigeria has initiated a lawsuit against the cryptocurrency exchange Binance, demanding $79.5 billion in economic losses and $2 billion in back taxes, according to court documents filed on February 19, 2025. The government alleges that Binance's operations have exacerbated the nation's currency issues, resulting in significant financial harm. Officials have detained two Binance executives in connection with the investigation, highlighted by claims that the exchange has become a popular platform for trading the Nigerian naira. Binance is currently contesting four charges of tax evasion, which include allegations of non-payment of value-added tax and failure to file tax returns. According to Nigeria's Federal Inland Revenue Service (FIRS), Binance operates with a substantial economic presence in the country and thus is liable for corporate income tax. FIRS is seeking a court declaration to enforce tax payment for 2022 and 2023, alongside penalties and interest based on the Central Bank of Nigeria's lending rate. As of March 2024, Binance announced it halted all transactions involving the naira, as it continues to address potential tax liabilities in Nigeria.

Nigeria's Chief of Defence Staff, Christopher Musa, expressed strong discontent after Canada denied his visa along with several senior military officials' visas to attend an event honoring wounded army veterans. The delegation was supposed to participate in the ongoing Invictus Winter Games in Vancouver, which has now reached its fifth day. Musa stated, "Half of my team… they've already gone," highlighting the disruption caused by the visa denial. The Canadian embassy in Nigeria acknowledged awareness of the situation but refrained from further comments, citing privacy concerns. This incident follows Canada’s recent introduction of new regulations allowing officials to "cancel temporary resident documents" as part of enhanced border security measures. Nigeria's national security adviser, Nuhu Ribadu, and Interior Minister, Tunji Olubunmi-Ojo, both criticized Canada's decision, with Ribadu remarking that Canada "can go to hell" for what he called a "disrespectful" act. Despite the tensions, Olubunmi-Ojo indicated that Nigeria might seek diplomatic avenues to address the issue.

A BBC investigation has revealed that Shell has allegedly ignored warnings regarding the troubled clean-up of oil-polluted areas in Niger Delta's Ogoniland. This initiative, started eight years ago and funded by various oil companies to the tune of $1 billion, claims progress—though internal documents suggest systemic corruption and mismanagement, leading to the characterization of the effort as a "scam." Observers have reported ongoing issues, including falsified laboratory results and the awarding of contracts to inexperienced firms. Shell, headquartered in London, contends that the challenging operating environment in Niger Delta is due to widespread illegal activities like oil theft, denying wrongdoing for pollution caused by sabotage or theft. As a civil trial looms in London, communities allege severe health risks and loss of livelihoods due to Shell's infrastructure spills between 1989 and 2020. The UN previously indicated that full remediation of the Ogoniland area could require 25 to 30 years, highlighting the ongoing struggle of local populations burdened by the legacy of oil contamination.