The Nigerian government has reportedly slapped the cryptocurrency exchange Binance with a $10 billion fine. According to a Nigerian government official, Binance is being punished for causing the local currency’s recent plunge against major currencies.
Report: Nigerian Government Imposes $10 Billion Fine on Binance
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Binance’s Alleged Influence on the Exchange Rate
The Nigerian government is reportedly demanding a $10 billion fine from the crypto asset exchange, Binance. Bayo Onanuga, a special adviser to President Bola Ahmed Tinubu, stated that the fine is related to the exchange’s illegal operations. These operations have reportedly contributed to the rapid depreciation of the naira in recent weeks.
In June 2023, Nigerian securities regulators issued a warning to residents against engaging with Binance’s unregulated or unregistered local affiliate. However, as later reported by Bitcoin.com News, Binance’s former CEO, Changpeng Zhao, subsequently labeled Binance Nigeria Limited a “scammer entity” and cautioned users against patronizing this platform.
Meanwhile, during an interview with the BBC, Onanuga reiterated his and other Nigerian officials’ concerns about the cryptocurrency exchange’s alleged influence on the naira’s exchange rate against the dollar. He explained:
“The platform fixes the exchange rate for the country and it is an illegal rate. The CBN [Central Bank of Nigeria] is the only authority that can fix the exchange rate for the country.”
Furthermore, the presidential adviser also accused Binance of harbouring individuals whose antics are said to undermine efforts to stabilize the Nigerian economy.
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