Nigeria’s long-running standoff with Binance may be nearing a turning point, after both parties confirmed they are exploring an out-of-court settlement in a multi-billion-dollar tax dispute.
The update, delivered at the Federal High Court in Abuja on Tuesday, signals a key development in a case that has come to symbolise Nigeria’s tense relationship with global cryptocurrency platforms.
Discussions with Nigeria Revenue Services (NRS) are now underway, says Sunday Agaji, Binance counsel.
The government’s legal team did not dispute this position. The move toward a settlement was initiated earlier that Tuesday morning, says Moses Ideho, deputy director of legal services at the NRS.
Justice Emeka Nwite has fixed 12 May 2026 for a progress report, creating a narrow window for what could become one of the most consequential regulatory settlements in Nigeria’s digital economy.
The dispute follows a period of intense regulatory pressure between 2023 and 2024, when authorities targeted crypto platforms amid concerns about currency volatility.
Olayemi Cardoso, governor of the Central Bank of Nigeria, had previously flagged "suspicious flows" through crypto exchanges, warning that such activities posed risks to monetary stability.
Regulatory actions were necessary to protect the integrity of Nigeria’s financial system and curb illicit financial flows, says Mohammed Idris, minister of information and National Orientation.
Binance denies any link to currency volatility. However, it still faces a separate $79.5 billion civil claim for alleged economic damage, a $2 billion demand for unpaid taxes from the NRS, and a parallel $35.4 million money-laundering case brought by the Economic and Financial Crimes Commission.
The sudden openness to a settlement comes just months after the Nigeria Tax Administration Act 2025 took effect on 1 January. The Act encourages the use of alternative dispute resolution to settle complex corporate tax arrears.
Innovation should not be stifled but properly governed, says Dr Bosun Tijani, minister of communications, innovation and digital economy. His position reflects a broader move to formalise the digital asset sector through the Digital Assets Rules 2025, rather than pushing it to the margins.
As the May deadline approaches, the outcome of the talks is expected to resonate far beyond Binance, shaping perceptions of Nigeria’s readiness to regulate the future of finance.
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