Binance Holdings Ltd. has approached the Federal High Court in Abuja, requesting it to overturn an earlier ex-parte order that had permitted the Federal Inland Revenue Service (FIRS) to serve court documents through substituted means.
The application was presented on Monday by the company’s legal representative, Senior Advocate of Nigeria, Chukwuka Ikwuazom, shortly after the case was called before Justice Inyang Ekwo.
Ikwuazom informed the court that a formal motion to vacate the substituted service order had been filed the previous Friday. He argued that the FIRS had failed to adhere to the established procedural rules before seeking and obtaining the court’s approval for the alternative mode of service.
Responding during the hearing, FIRS counsel, Chief Kanu Agabi, SAN, acknowledged receipt of the application and indicated his intention to respond in due course.
Justice Ekwo, however, noted that the motion was not yet part of the court file. In response, Ikwuazom apologised and explained that the motion had only just been submitted. The judge then adjourned proceedings to 30 April to allow time for the FIRS to prepare and file its reply.
The original order in question was granted on 11 February 2024, when Justice Ekwo authorised the FIRS to serve Binance by sending court documents to an email address linked to the company—Eleanor-huges@binance.com—on the grounds that Binance lacks a physical presence in Nigeria.
The FIRS is attempting to recover $2.001 billion in alleged unpaid taxes from Binance. The agency claims the company maintained a significant economic presence in Nigeria during 2022 and 2023. In addition to the principal sum, the FIRS is seeking penalties that include a 10% annual interest rate and the Central Bank of Nigeria’s lending rate of 26.75%, to be applied from January 2023 onwards.
In the motion filed on 4 April, Binance contested the validity of the substituted service, arguing that as a company incorporated in the Cayman Islands, legal service must be executed either by direct delivery to its authorised officers or in accordance with international procedures that comply with Nigerian legal standards. The company contended that the FIRS had not obtained the necessary leave of court to serve documents outside the court’s jurisdiction.
According to the FIRS, Binance has operated in Nigeria for over six years without registering with relevant authorities. The tax agency alleges that the company earned substantial revenue from Nigerian users. A government-backed affidavit submitted to the court stated that Binance had over 386,000 Nigerian users and processed trading volumes of $21.6 billion in 2023 alone, generating $35.4 million in revenue.
This matter forms part of a broader set of legal challenges Binance is currently facing in Nigeria. In a separate criminal case, the Economic and Financial Crimes Commission (EFCC) has also instituted proceedings against the company before another judge of the Federal High Court.