The Nigerian Committee has issued an ultimatum after Binance refused its invitation to address the committee in the past several times.

Binance is under fire in Nigeria following its settlement with the United States Department of Justice (DOJ). According to local media, Nigeria's House of Representatives Committee on Financial Crimes gave an ultimatum to Binance CEO Richard Teng on Friday.

Ginger Onwusibe, the committee's chairman, has requested that Teng appear before it by March 4. The summons was issued in connection with its alleged involvement in financial crimes, such as money laundering and terrorist funding.

Onwusibe cautioned that if Teng did not respond to the summons, the committee would be forced to use its constitutional powers and take appropriate action.

Binance pleaded guilty to money laundering and terrorism financing in a plea agreement approved by a US judge last week. As part of its settlement, the exchange agreed to pay a historic fine of $4.3 billion and to operate under surveillance.

Binance has refused to cooperate with the Nigerian committee.

In a letter dated Dec. 12, the committee first requested that Binance's Managing Director attend a hearing on Dec. 18. Binance was asked to inform the committee on its disregard for Nigerian laws.

“The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially by foreign companies… The allegations of terrorism financing, money laundering, and tax evasion, amongst others levelled against Binance are damning enough.”

Onwusibe stated that the committee is committed to combating financial crime and "blocking the leaks and channels to financing terror," and that "no distraction or manipulation can stop us."

With Nigeria in recession, the committee is attempting to collect as many tax revenues as possible.

According to Onwusibe, Binance's platform serves more than 10 million Nigerians. However, the exchange does not contribute to the country's tax revenue. Onwusibe added that Binance does not have a physical presence in Nigeria where users can raise concerns.

“The era of exploitation is over and all culprits must be held accountable"

Binance's problems in Nigeria are intensifying.

Last Monday, the Nigerian Communications Commission (NCC) ordered telecom hi providers to prohibit access to foreign cryptocurrency trading websites such as Binance, Coinbase, and Kraken.

According to DLNews, on February 26, Nigeria's Department of State Security detained two Binance officials and confiscated their passports as part of the investigation into Binance.

A day later, the governor of the Central Bank of Nigeria, Olayemi Cardoso, stated that Binance Nigeria had seen "suspicious flows" of money in 2023.

“In the case of Binance, in the last one year alone, $26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify.”

According to the BBC, the Nigerian government has ordered Binance to pay restitution of $10 billion. The report also stated that the government suspects Binance and its executives of manipulating foreign exchange rates through currency speculation and rate manipulation.

According to a report published the same day by the Peoples Gazette Nigeria, a Binance representative stated that while the exchange was in talks with the government to "resolve issues," it had not been told of the $10 billion punishment. According to the same story, special advisor Bayo Onanuga stated that his comments to the BBC were misconstrued, and that he never suggested the government had decided the punishment amount or that Binance was aware of it.