Introduction: A Growing Rift Between Crypto and Government
Nigeria was once seen as Africa’s most promising crypto market. With soaring inflation and currency issues, digital assets offered Nigerians an escape. Binance, the world’s largest crypto exchange, played a central role in this rise.
But everything changed in 2024.
The Nigerian government cracked down hard on Binance. The result? Arrested executives, frozen operations, and a $2 billion tax lawsuit.
This conflict marks a major shift. It’s not just about crypto—it’s about control, currency stability, and the future of fintech in Africa.
Why Nigeria Targeted Binance
The trouble began with the naira. As Nigeria’s currency lost value, officials looked for someone to blame. Binance’s peer-to-peer (P2P) platform allowed people to trade naira for dollars at market-driven rates.
Authorities claimed this worsened the naira’s collapse.
They accused Binance of enabling illegal forex speculation. Since users could buy and sell dollars freely, the government said it disrupted official exchange systems.
But that wasn’t all. The Central Bank of Nigeria and the Federal Inland Revenue Service (FIRS) claimed Binance didn’t register properly. Despite doing huge business in the country, it reportedly avoided paying taxes and failed to follow local laws.
Executives Detained Without Warning
In February 2024, two Binance executives flew to Abuja to meet with officials. They expected discussions. Instead, they were detained.
- Nadeem Anjarwalla, a British-Kenyan manager
- Tigran Gambaryan, a U.S. citizen and former federal agent
The arrests shocked the crypto world. Anjarwalla later escaped custody under mysterious circumstances, allegedly using a second passport. Gambaryan remained behind bars.
The move sparked international outrage. Crypto supporters called it overreach. Diplomats raised human rights concerns.
Government Files Massive Claims
Soon after, Nigeria escalated the case.
The FIRS filed a major lawsuit. It accused Binance of four counts of tax evasion, including not collecting Value Added Tax (VAT) and failing to pay corporate income tax.
Separately, government lawyers claimed Binance had inflicted $79 billion in economic damage. They said the platform undermined the currency and hurt national stability.
Observers questioned the size of the claims. Some called them excessive. Others saw them as part of a broader strategy to pressure crypto companies into compliance—or out of the country altogether.
Binance Reacts: Pulls Out of Nigeria’s Currency
Binance responded fast. On March 8, 2024, it suspended all naira trading. That meant users could no longer access the naira through P2P, bank channels, or wallet deposits.
This sudden exit left thousands of Nigerian users stranded. Many couldn’t withdraw funds. Others couldn’t finish trades.
The company also paused operations for other African fiat currencies. It was clear—Binance wanted to reduce risk while under government pressure.
Nigeria’s Long Crypto Conflict
This wasn’t Nigeria’s first clash with crypto.
Back in 2021, the Central Bank banned banks from handling crypto transactions. Still, adoption kept growing. Nigerians turned to P2P platforms to buy and sell coins like Bitcoin and USDT.
Why? Because traditional banking failed them. Many had limited access to international payments. Crypto was faster, cheaper, and borderless.
But authorities didn’t like losing control. They worried about fraud, scams, and terror financing. Binance, with its large user base, became the biggest target.
Crypto Users Scramble for Alternatives
Once Binance shut down naira support, traders moved quickly.
- Telegram groups exploded in popularity
- P2P trading migrated to OKX, KuCoin, and smaller platforms
- Stablecoins like USDT became even more common
The community didn’t stop—it adapted. But the uncertainty damaged trust. Traders feared their funds could be frozen at any time.
Still, most Nigerians weren’t ready to give up crypto. They simply found new ways to stay in the market.
Global Attention and Diplomatic Heat
The detainment of a U.S. citizen turned this local issue into a global one. U.S. lawmakers began raising concerns about due process and fair treatment. International media covered the case daily.
Meanwhile, Anjarwalla’s escape raised more questions than answers. How did he manage to flee? Why didn’t Nigeria hold his passport? And what would happen next?
Governments from the U.K. and Kenya were pulled into the drama. All eyes turned to Nigeria’s legal system and how it would handle the situation.
Legal Process and Delays
Binance was expected to appear in court multiple times. But things kept getting delayed.
On April 4, 2025, Nigeria postponed the criminal tax trial to April 19. Binance’s legal team said the company had not been properly notified. The case is still ongoing, with no clear resolution yet.
Tigran Gambaryan remains in detention. His legal status is uncertain. His family and supporters continue to campaign for his release.
Crypto Regulation Is Coming—But What Kind?
Nigeria now says it wants to regulate crypto more seriously.
Officials have proposed new frameworks for taxation, licensing, and transaction tracking. They also want more control over stablecoins and decentralized platforms.
But many in the industry worry these rules could go too far. Without clear guidance or fair enforcement, innovation may slow down—or go underground.
There’s a fine line between regulation and restriction. How Nigeria draws it will determine the future of crypto in the region.
Crypto Use Still Surges
Even with Binance out of the picture, crypto use in Nigeria is rising.
The country remains among the world’s top crypto markets by P2P volume. Nigerians continue to use stablecoins, blockchain wallets, and decentralized finance (DeFi) apps.
They use crypto to:
- Send remittances
- Save against inflation
- Avoid currency restrictions
- Run global businesses
In fact, the crackdown may have made crypto seem even more valuable—for those who no longer trust the traditional system.
Timeline of Major Events
| Date | Event |
|---|---|
| Feb 2024 | Binance execs detained in Abuja |
| Mar 2024 | Anjarwalla escapes custody |
| Mar 8, 2024 | Binance suspends naira operations |
| Mar 2024 | Nigerian government files tax and damage claims |
| Apr 2025 | Court postpones Binance tax trial to Apr 19 |
| Apr 30, 2025 | New court date for economic damage case |
Final Thoughts: A Turning Point for Crypto in Africa
The clash between Binance and Nigeria is more than just a legal case. It’s a battle over who controls money in the digital age.
Will governments allow decentralized systems to grow? Or will they fight to keep financial power centralized?
Nigeria’s next moves could set a blueprint for other African nations. If handled well, crypto regulation could create jobs, unlock innovation, and protect consumers. But if mismanaged, it could push talent and capital elsewhere.
One thing is clear: crypto isn’t going away. But how it evolves in Africa might depend on what happens in Nigeria next.
Disclaimer:
This article is for informational purposes only and should not be taken as legal, financial, or investment advice. All facts reflect publicly available information at the time of writing. Readers are advised to conduct their own research and consult professionals before making any decisions based on this content.