Economy
Nigeria Seeks $79.5bn, N231m, Others From Binance for Economic Loss
By Adedapo Adesanya
The federal government is asking Binance Holdings Limited to pay $79,514,055,594.40 and N231 million for economic losses allegedly caused by its operations in Nigeria.
In the suit filed by the Federal Inland Revenue Service (FIRS), it also asked the Federal High Court in Abuja for $2.0 billion in income tax for 2022 and 2023.
According to Nairametrics, the FIRS is also seeking the monies based on 10 per cent penalty for non-payment of income tax for 2022 and 2023, a 26.75 per cent interest rate—being the prevailing Central Bank of Nigeria (CBN) lending rate per annum—from January 1, 2023, and January 1, 2024, respectively, among other charges.
The lawsuit alleged that Binance deliberately shrouded its business activities in secrecy despite having a “significant economic presence” in Nigeria.
The violations cited include breaches of Nigeria’s Companies Income Tax (CIT) Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence (SEP) Order.
This is coming as the cryptocurrency exchange platform, along with two of its executives, Mr Tigran Gambaryan and Mr Nadeem Anjarwalla, are accused in this lawsuit of contravening Nigerian laws by failing to register with the FIRS for tax compliance and causing economic losses to the country during the period under review.
While Mr Anjarwalla is at large, Mr Gambrayan who recently left the custody of Nigeria after the duo were arrested by the Nigerian government last year alleged that top members in the Nigerian government sought bribes to settle the issue.
“At the House meeting, there were three members present. Two of them were Peter Akpanke and Philip Agbese, both working under the leadership of Ginger Obinna Onwusibe. There was a third House member, but I don’t recall his name.
“They set up fake cameras and media to make the meeting appear official, but the cameras weren’t even plugged in. As you may already know, this ended with them asking for a $150 million bribe, paid in cryptocurrency into their personal wallets. A Mickey Mouse operation at its best,” Mr Gambaryan wrote on X, formerly in Twitter.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, February 26 with the Unlisted Security Index (NSI) static at 3,268.81 points and the market capitalization unchanged at N1.851 trillion.
The alternative stock exchange closed flat at midweek despite recording six price movers, with two in the green region and four in the red territory.
On the gainers’ side Afriland Properties Plc and FrieslandCampina Wamco Nigeria Plc, with the former rising by N1.12 to N22.80 per unit from the preceding day’s N21.68 per unit and the latter expanding by 76 Kobo to settle at N39.86 per share compared with Tuesday’s closing price of N39.10 per share.
However, First Trust Microfinance Bank Plc lost 5 kobo to close at 47 Kobo per unit compared with the previous day’s 52 Kobo per unit, Geo Fluids dropped 34 Kobo to settle at N3.58 per share versus the preceding session’s N3.24 per share, UBN Property Plc went down by 10 Kobo to finish at N1.75 per unit, in contrast to Tuesday’s closing price of N1.85 per unit, and Central Securities Clearing System (CSCS) Plc declined by 14 Kobo to close at N22.01 per share versus N22.15 per share.
During yesterday’s session, the volume of securities transacted by investors jumped by 99.3 per cent to 1.2 million units from the 605,399 units transacted in the previous trading day.
However, the value of transactions slid by 28.5 per cent to N10.6 million from N14.8 million, while the number of deals went up by 58.3 per cent to 38 deals from 24 deals recorded on Tuesday.
At the close of business, Impresit Bakolori Plc was the most active stock by value (year-to-date) with 533.8 million units worth N520.9 million, followed by Afriland Properties Plc with 16.4 million units valued at 335.2 million, and FrieslandCampina Wamco Nigeria Plc with 8.3 million units valued at N329.2 million.
Industrial and General Insurance (IGI) Plc ended the most active stock by volume on a year-to-date basis with 69.7 million units worth N23.6 million, trailed by Geo-Fluids Plc with 10.9 million units sold for N51.9 million, and FrieslandCampina Wamco Nigeria Plc with 8.3 million units valued at N329.2 million.
By Adedapo Adesanya
The Naira closed flat on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, February 26 at N1,501.95/$1.
Also, the value of the local currency against the Pound Sterling and the Euro remained unchanged in the official market during the session at N1,894.72/£1 and N1,570.11/€1 apiece.
However, the Nigerian currency depreciated against the United States currency by N10 at midweek to quote at N1,500/$1, in contrast to the preceding day’s N1,490/$1.
The outcome of the local currency comes amid ease in the wider economy and recent moves like clearing backlogs, which have led to the country’s foreign reserves losing over $2 billion in the last month.
However, market analysts fear that the continued drop in the foreign reserves may only offer temporary respite to the Naira.
In the cryptocurrency market, most of the tokens fell on Wednesday after the US President, Mr Donald Trump, said he plans to impose a 25 per cent tariff on the European Union (EU) during his first cabinet meeting.
The price of Bitcoin (BTC) depreciated by more than 3 per cent in the last 24 hours to close at $85,878.47.
After the recent market selloff, there were calls that the drop might have been the bottom but Mr Trump’s EU tariff plans seem to have dampened market optimism.
The American President claimed that the 27-member union does not accept US cars and farm products while the US buys from the bloc.
On its part, the EU said it will react firmly and immediately against “unjustified barriers to free and fair trade”
Ethereum (ETH) slumped by 5.9 per cent to $2,341.69, Ripple (XRP) went down by 3.7 per cent to $2.20, Cardano (ADA) fell by 2.9 per cent to trade at $0.6625, Dogecoin (DOGE) depreciated by 1.3 per cent to $0.2076, Binance Coin (BNB) weakened by 1.2 per cent to $614.13, and Solana (SOL) declined by 1.0 per cent to $140.03.
But Litecoin (LTC) recorded a 6.9 per cent appreciation to quote at $126.46, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited recorded its first gain this week, with a marginal 0.02 per cent rise on Wednesday, showing resilience in the face of adversities.
Also, investor sentiment turned bullish after closing weak in the past trading sessions.
Yesterday, the bourse ended with 30 price gainers and 15 price losers, representing a positive market breadth index.
UH REIT gained 9.94 per cent to settle at N44.25, Africa Prudential jumped by 9.90 per cent to N33.30, Caverton soared by 9.87 per cent after a deal with the Nigerian National Petroleum Company (NNPC) Limited to N2.45, Omatek rose by 8.22 per cent to 79 Kobo, and Lasaco Assurance grew by 6.92 per cent to N3.09.
On the flip side, Guinea Insurance tumbled by 10.00 per cent to 72 Kobo, Eunisell crumbled by 9.68 per cent to N9.80, The Initiates declined by 8.02 per cent to N3.67, Oando shed 7.69 per cent to sell for N48.00, and Union Dicon dropped 7.50 per cent to trade at N5.55.
During the midweek session, the consumer goods counter chalked up 0.17 per cent, the insurance index appreciated by 0.16 per cent, and the industrial goods sector improved by 0.01 per cent.
However, the energy space gave up 0.71 per cent, and the banking sector depreciated by 0.21 per cent, while the commodity counter closed flat.
When Customs Street closed for the day, the All-Share Index (ASI) increased by 17.38 points to 107,798.99 points from 107,781.61 points and the market capitalisation added N11 billion to finish at N67.179 trillion compared with the preceding day’s N67.168 trillion.
Business Post reports that 245.5 million stocks worth N8.4 billion exchanged hands in 10,098 deals on Wednesday, in contrast to the 363.0 million stocks valued at N10.1 billion transacted in 13,753 deals on Tuesday.
This indicated that the trading volume, value and number of deals went down by 32.37 per cent, 16.83 per cent, and 26.58 per cent, respectively.
Access Holdings led the activity chart with 36.6 million shares sold for N937.9 million, Zenith Bank transacted 26.8 million equities worth N1.3 billion, Sterling Holdings exchanged 11.3 million stocks valued at N62.3 million, Jaiz Bank traded 10.9 million equities worth N36.1 million, and AIICO Insurance transacted 10.8 million stocks for N17.9 million.
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