Investigation of Binance undertaken by Nigerian authorities confirmed by government official
The Office of the National Security Adviser (ONSA) of Nigeria is investigating Binance, a global cryptocurrency exchange, over allegations that the platform has caused significant economic impact within the country.
According to reports, the federal government of Nigeria directed telecommunications service providers to restrict access to cryptocurrency exchanges operating within the nation, including Binance. This alleged action directly affected the Nigerian economy, prompting the government to intervene.
Binance's P2P marketplace serves as an escrow to connect USDT traders to buyers at a price agreed to by both parties. However, last week, Binance placed restrictions on purchasing USDT using Nigeria's currency. As a result, Binance's website and other major crypto exchanges were not accessible to Nigerian users earlier last week.
The Nigerian government accuses Binance of allowing customers to arbitrarily fix United States dollar to naira exchange rates, which has contributed to the devaluation of the naira. Moreover, Binance is alleged to owe substantial unpaid taxes to the Nigerian government.
The Nigerian government holds that Binance has a "significant economic presence" in the country despite not being registered there, making it liable for corporate taxes within Nigeria. Binance's operational structure, often moving its registration between countries and currently having no formal headquarters, complicates regulatory oversight.
The investigation into Binance's activities in Nigeria is an inter-agency operation, coordinated by ONSA's head of strategic communications, Zakari Mijinyawa. Zakari Mijinyawa declined to provide further information on the investigation, stating that it is ongoing.
Binance is in contact with regulators and policymakers discussing "managing the evolving landscape of cryptocurrency." However, the exact nature of these discussions remains unclear.
The investigation into Binance's activities in Nigeria may have implications for the cryptocurrency industry in Africa. It underscores the challenges African countries face in regulating crypto exchanges operating within or linked to their economies.
This legal and regulatory dispute is a significant development in the relationship between Nigeria and Binance. While Nigeria is also moving to regulate and integrate digital assets officially under new legislation signed in April 2025, the government's position is that its actions are about enforcing laws and protecting the economy rather than opposing cryptocurrencies themselves.
The Nigerian government filed an $81.5 billion lawsuit against Binance in February 2025, claiming the exchange was responsible for sabotaging the Nigerian economy, including causing the naira's devaluation and owing $2 billion in back taxes, fines, and interest covering 2022 and 2023. The news of the investigation was first reported by Nigerian news outlet Premium Times.
This is a developing story, and further updates will be provided as more information becomes available.
- The Nigerian Office of the National Security Adviser (ONSA) is investigating Binance over allegations that its operations have caused significant economic impact within Nigeria.
- The investigation follows a directive from the federal government for telecommunications service providers to restrict access to cryptocurrency exchanges, including Binance.
- Binance's P2P marketplace has been alleged to allow customers to arbitrarily fix exchange rates, contributing to the devaluation of the naira, and owing substantial unpaid taxes to the Nigerian government.
- The Nigerian government holds Binance accountable for corporate taxes and considers it to have a "significant economic presence" in the country despite not being registered there.
- The investigative process is an inter-agency operation, coordinated by Zakari Mijinyawa, head of strategic communications at ONSA, who has declined to provide further information.
- Binance is reportedly in discussions with Nigerian regulators and policymakers regarding the evolving landscape of cryptocurrency.
- The investigation and potential regulatory action against Binance in Nigeria may have implications for the overall cryptocurrency industry across Africa, highlighting the challenges African countries face in regulating crypto exchanges.
