Outside Source
According to Nairametrics, Nigeria’s total money supply (M2) increased 17% year-over-year in January 2025, diluting the currency’s value.
News
The government of Nigeria has filed an $81.5 billion lawsuit against Binance, the world’s largest centralized exchange by trading volume, for $2 billion in back taxes and $79 billion in economic damages for allegedly crashing Nigeria’s local fiat currency.
According to Reuters, Nigeria’s Federal Inland Revenue Service (FIRS) said Binance has a “significant economic presence” inside Nigeria and unpaid taxes from 2022 and 2023.
FIRS is also reportedly demanding a 26.75% interest payment on the back taxes allegedly owed by the company and continues to claim that the exchange was instrumental in lowering the value of the Nigerian naira in foreign exchange markets.
The West African country previously charged and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, alleging tax fraud and money laundering. FIRS later dropped the tax charges against both executives.
Naira M2 money supply has dramatically risen since 2019. Source: Trading Economics
Related: Nigeria to tax cryptocurrency transactions for revenue boost
Nigeria locked in a high-profile legal battle against Binance
The government of Nigeria unexpectedly detained Gambaryan and Anjarwalla in February 2024 during what was supposed to be a routine talk between the company and state regulators.
Binance halted all naira trading activity on its platform in March 2024 after the detention of the executives and complaints from Nigerian officials that traders on the platform were destabilizing the naira.
Gambaryan’s detention caught media attention after news broke that the executive was suffering from chronic health conditions yet reportedly denied adequate medical care.
In July 2024, US Representative Rich McCormick introduced a resolution to classify the detention of Gambaryan, who is a US citizen, as a hostage situation and demanded the immediate release of the executive.
Gambaryan sitting in court, visibly shaken by the proceedings and harsh prison conditions. Source: The Associated Press
US diplomats amplified pressure on Nigeria’s government to release the Binance executive in September 2024, which included calls from the US ambassador to Nigeria, Richard Mills, to free Gambaryan.
Following the pressure campaign, the country’s Economic and Financial Crimes Commission withdrew the money laundering charges against the Binance executive in October 2024.
Gambaryan was released from prison custody and left Nigeria on Oct. 23, 2024, after nearly seven months behind bars and a complicated legal battle.
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This article first appeared at Cointelegraph.com News
