Federal High Court to Rule November 12 on Binance’s Application to Set Aside Service in FIRS $81bn Tax Suit
The Federal High Court, Abuja, has fixed November 12, 2025, to deliver its ruling on an application by Binance Holdings Limited seeking to set aside what it describes as a “purported substituted service” of court processes in the Federal Inland Revenue Service’s (FIRS) $81 billion tax and economic loss suit.
Justice Umar Mohammed fixed the date after hearing arguments from Chukwuka Ikwuazom, SAN, counsel to Binance, and S.E. Maliki, counsel to the FIRS.
The Federal Government, through the FIRS, is demanding that Binance pay $79.5 billion and ₦231 million for alleged economic losses caused by its operations in Nigeria, as well as $2 billion in unpaid income tax for 2022 and 2023.
The monetary claims also include a 10% penalty for non‑payment of income tax for the relevant years and a 26.75% annual interest rate, being the prevailing Central Bank of Nigeria (CBN) lending rate, effective from January 1, 2023, and January 1, 2024, respectively.
The FIRS case, filed by Kanu Agabi, SAN, also lists two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, as co‑defendants. They are accused of failing to register with the FIRS for tax purposes and of causing significant economic losses to Nigeria.
According to the suit, Binance allegedly concealed its business activities despite maintaining a “significant economic presence” in the country.
Agabi informed the court that several attempts to serve Binance directly had failed, prompting him to seek an order for substituted service.
Substituted service is a legal mechanism that allows court documents to be delivered through alternative means when direct service on a party is impracticable.
Justice Inyang Ekwo had earlier granted the application and ordered that substituted service be effected within seven days.
At the resumed proceedings, however, Ikwuazom filed a motion challenging the validity of the substituted service.
He argued that substituted service on a defendant outside Nigeria can only be valid where the government or a court of the foreign country certifies that attempts at direct service have failed.
He further contended that the email address used by the FIRS—eleanor-huges@binance.com—did not belong to Eleanor Hughes or any other Binance officer, and therefore could not constitute valid service.
The court subsequently directed the FIRS to respond to Binance’s motion. In its counter‑affidavit, filed on April 14, litigation officer Ishaya Isuwa described Binance’s claims as false and misleading.
Isuwa maintained that Binance has no registered office in the Cayman Islands, as it claims, but continues to maintain significant economic activity in Nigeria through its global online platform.
He also insisted that Eleanor Hughes is Binance’s General Counsel and principal officer, who has previously engaged Nigerian authorities on legal matters, making the substituted service valid.
After hearing both sides, Justice Mohammed adjourned the matter to November 12, 2025, for ruling. The decision is expected to clarify the scope of substituted service against foreign entities operating in Nigeria.
Meanwhile, Binance is also facing separate criminal charges of tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite, in a case jointly prosecuted by the FIRS and the EFCC. The company has denied all allegations.
Internationally, Binance continues to face regulatory sanctions, with several countries, including the United States, imposing fines for compliance breaches.
