Despite $80b Binance lawsuit, Nigeria is open to crypto firms -Minister Idris

Nigeria remains open to cryptocurrency companies even as it pursues an $80 billion lawsuit against Binance, Information Minister Mohammed Idris.

The government sued Binance in February over alleged economic losses and detained U.S. staffer Tigran Gambaryan in a money laundering case.

He was released after eight months, and charges were dropped. Binance, which ceased Nigerian operations in March 2024, denies all allegations.

“This is part of the effort to strengthen our laws, not to cripple anybody,” Idris said as quoted by Semafor. “There are other companies operating in the crypto sector in Nigeria, you don’t see them [facing charges].”

He added that the government is “really concerned” about crypto’s role in terrorism financing, money laundering, and tax evasion, stressing that illicit financial flows must be addressed globally.

Nigeria is the world’s second-largest crypto adopter, receiving $59 billion in transactions between July 2023 and June 2024. It accounts for 40% of stablecoin inflows in sub-Saharan Africa, according to Chainalysis.

The Binance fine has drawn comparisons to past penalties, including a $5.2 billion fine against MTN in 2015. Critics argue Nigeria’s heavy fines may deter investment.

Idris said the government is improving the business climate by revising visa rules, tax laws, and expatriate quotas. Foreign direct investment fell from $8.1 billion in 2009 to $1.6 billion in 2023.

He denied that Binance caused the naira’s devaluation but acknowledged the exchange “contributed” to it.

Meanwhile, Nigeria’s Securities and Exchange Commission issued provisional crypto licenses to startups Busha and Quidax, signaling a growing openness to regulated crypto activity.

“The crypto ecosystem in Nigeria remains active,” Busha manager Ngozi Okonye said, adding that SEC licensing has boosted banking access and business confidence.