The United States has cautioned American businesses considering investments in Nigeria to carefully assess security threats, corruption, bureaucratic delays and the possibility of foreign executives facing detention during regulatory disputes.
The warning was contained in the US Department of State’s 2026 Investment Climate Statements on Nigeria, which examined the country’s economic reforms, investment prospects and persistent challenges confronting foreign businesses.
According to the report, Nigeria has made progress towards economic stabilisation following major policy changes introduced by President Bola Tinubu’s administration. However, it noted that the removal of petrol subsidies and foreign exchange market reforms initially triggered significant economic disruptions, with the resulting financial pressure continuing to affect households and businesses.
Security was identified as a major concern, particularly for investors interested in agriculture, mining and the oil industry. Although attacks on oil infrastructure in the Niger Delta have reportedly declined, crude oil theft and illegal bunkering remain problems. In northern Nigeria, the activities of insurgents and armed criminal groups continue to threaten economic activities.
The State Department also pointed to the 2024 detention of Tigran Gambaryan, an American citizen and Binance executive who spent nearly eight months in Nigerian custody, as an example of the risks foreign business leaders could face during regulatory disagreements.
Nigeria’s port operations were another area of concern. The report described delays and administrative inefficiencies as an additional cost to businesses, noting that cargo clearance at Apapa and Tin Can Island ports can exceed 20 days because of manual inspections. Meanwhile, Lekki Deep Seaport handled $9.6 billion in trade in 2025, operating at approximately half its capacity.
To improve trade efficiency, the Federal Government launched the first phase of the National Single Window initiative on March 27, 2026. The digital platform is intended to bring key trade agencies together, reduce paperwork and cut cargo clearance times to fewer than seven days by the end of 2026.
The report also questioned the quality of Nigeria’s rising capital inflows, stating that capital importation reached $21 billion in October 2025, with approximately 92 per cent attributed to foreign portfolio investment rather than long-term investment in physical infrastructure. It added that US investment in Nigeria stood at $7.9 billion at the end of 2024, while bilateral trade between both countries reached $14.8 billion in 2025.
Despite acknowledging improvements in some economic indicators, the department highlighted the social consequences of the government’s fiscal reforms. It said petrol prices had increased fivefold compared with 2023 levels and cited a World Bank estimate that Nigeria’s poverty rate reached 63 per cent in 2025. The report also noted that economic growth rose to 4.1 per cent in 2024 before easing to four per cent in 2025, while foreign exchange reserves reached $50.45 billion in February 2026.
Corruption, high import tariffs and inconsistent implementation of regulations were further identified as obstacles to a more attractive investment climate. Although Nigeria permits full foreign ownership in most sectors, some industries remain subject to licensing requirements and restrictions. The transition from the Pioneer Status Incentive scheme to the Economic Development Tax Incentive in January 2026 was also highlighted as an adjustment foreign companies must navigate.
The department acknowledged government efforts to improve the business environment, including the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which coordinates 27 government agencies. However, it stressed that uneven implementation of reforms continues to create uncertainty for investors. The report ultimately presents Nigeria as a market with significant commercial opportunities but substantial risks that American businesses must consider before committing capital.
