Nigeria is still open to cryptocurrency companies, despite pursuing an $80 billion lawsuit against Binance, according to Information Minister Mohammed Idris.
The government filed the lawsuit in February, citing alleged economic damages and the detention of U.S. staffer Tigran Gambaryan over a money laundering case.
Gambaryan was released after eight months, with charges later dropped. Binance, which halted its operations in Nigeria in March 2024, has denied the allegations.
“This is part of an effort to strengthen our laws, not to harm anyone,” Idris said, as reported by Semafor. “Other companies in the crypto sector are operating in Nigeria without facing charges.”
Idris stressed that the government remains “really concerned” about the role of cryptocurrencies in terrorism financing, money laundering, and tax evasion, emphasizing the need to address illicit financial flows on a global scale.
Nigeria is the world’s second-largest crypto adopter, with $59 billion in transactions between July 2023 and June 2024. It also represents 40% of stablecoin inflows in sub-Saharan Africa, according to Chainalysis.
The Binance lawsuit has drawn comparisons to previous penalties, such as the $5.2 billion fine imposed on MTN in 2015. Critics argue that Nigeria’s significant fines could discourage investment.
Idris, however, stated that the government is working to improve the business climate by revising visa regulations, tax laws, and expatriate quotas. Foreign direct investment has dropped from $8.1 billion in 2009 to $1.6 billion in 2023.
He denied that Binance was responsible for the naira’s devaluation but acknowledged that the exchange had “contributed” to it.
Meanwhile, Nigeria’s Securities and Exchange Commission (SEC) has granted provisional crypto licenses to startups Busha and Quidax, signaling an openness to regulated crypto activity.
“The crypto ecosystem in Nigeria remains active,” said Busha manager Ngozi Okonye, noting that SEC licensing has improved banking access and boosted business confidence.
