The United States government has warned American business executives about the risk of detention, insecurity and corruption when travelling to Nigeria for business, raising concerns about the country’s investment environment.
The warning, contained in the US Department of State’s 2026 Investment Climate Statement on Nigeria, highlights the possibility of foreign executives becoming involved in regulatory disputes that could lead to detention or restrictions on leaving the country.
The report also identifies terrorism, oil theft, delays at seaports and unpredictable regulatory practices as obstacles to business operations.
Although Washington acknowledged improvements in some Nigerian economic indicators following reforms introduced by President Bola Tinubu’s administration, it said significant challenges remained for investors seeking to establish or expand businesses.
The assessment comes as Nigeria seeks to attract foreign investment, increase industrial production and strengthen economic ties with international trading partners.
Why US warns executives about detention in Nigeria
One of the report’s central concerns is the treatment of foreign company executives during commercial and regulatory disagreements.
The US government alleged that Nigerian authorities had previously used detention and restrictions on international travel as leverage in disputes involving multinational companies.
It cited the case of Tigran Gambaryan, an American citizen and Binance executive who was detained in Nigeria for nearly eight months in 2024.
Gambaryan was arrested amid investigations into Binance’s operations and allegations involving financial misconduct and regulatory violations.
His detention attracted international attention and raised questions about how Nigeria handles disputes involving foreign businesses.
The charges against Gambaryan were subsequently dropped, allowing him to leave Nigeria.
The US report used the case to illustrate potential risks facing executives whose companies become involved in regulatory investigations.
The warning does not mean American business executives are prohibited from travelling to Nigeria or that ordinary business trips automatically lead to detention.
Rather, the assessment advises businesses to consider the legal and regulatory environment before sending senior employees to the country.
For multinational companies, such concerns may influence decisions about staff deployment, legal representation and compliance procedures.
Insecurity threatens agriculture, mining and investment
Beyond detention concerns, the State Department identified Nigeria’s security situation as another obstacle to investment.
The report noted that terrorist attacks and the activities of armed groups continued to affect economic operations in parts of northern Nigeria.
It said insecurity was particularly damaging to agriculture and mining, two sectors with considerable potential to generate employment and attract foreign investment.
Businesses operating in affected communities face additional expenses for security, transportation and the protection of workers and equipment.
The report also raised concerns about oil theft and illegal crude oil operations in the Niger Delta.
Although attacks on oil infrastructure have declined, the State Department said illegal activities continued to threaten the petroleum industry.
Such security challenges can increase operating costs and discourage businesses from expanding into affected locations.
Nigerian ports face delays exceeding 20 days
The US assessment also identified delays at Nigerian seaports as a problem for companies importing machinery, raw materials and finished products.
According to the report, cargo clearance at the Apapa and Tin Can Island ports can take more than 20 days because of manual inspections and administrative procedures.
These delays can increase storage charges, disrupt supply chains and raise production costs.
For manufacturers relying on imported machinery and components, delayed shipments may affect production schedules and commercial commitments.
The State Department acknowledged that the Lekki Deep Seaport had helped reduce some pressure on older facilities.
It reported that the port handled approximately $9.6 billion in trade during 2025 while operating at about half its capacity.
The Nigerian government has also introduced the National Single Window initiative to simplify customs and other import procedures.
The first phase was launched on 27 March 2026, with the government targeting a reduction in cargo clearance times to fewer than seven days.
However, the US report said improvements in implementation would be necessary to address existing trade difficulties.
US questions quality of Nigeria’s $21bn capital inflows
Despite its concerns, the State Department acknowledged that Nigeria had recorded increased capital inflows and some improvement in economic stability.
It reported that capital importation reached approximately $21 billion by October 2025.
However, the report said 92 per cent of the inflows consisted of portfolio investments, rather than direct investment in productive businesses and infrastructure.
Portfolio investment generally involves purchasing financial assets such as shares and bonds.
Unlike foreign direct investment, it does not necessarily involve establishing factories, building facilities or creating substantial numbers of permanent jobs.
Based on the figures presented, approximately $19.32 billion of the reported $21 billion was portfolio investment, leaving about $1.68 billion in other forms of capital inflows.
The remaining amount should not be treated entirely as foreign direct investment because capital importation can also include other investment categories.
The distinction matters because large capital inflows do not automatically translate into increased industrial capacity or employment.
The report nevertheless noted that US foreign direct investment in Nigeria reached $7.9 billion by the end of 2024, representing a 25 per cent increase from the previous year.
It also placed trade between Nigeria and the United States at $14.8 billion in 2025.
These figures suggest that commercial ties between both countries remain substantial despite the risks identified by Washington.
Tinubu’s economic reforms receive mixed assessment
The State Department recognised Nigeria’s efforts to stabilise the economy through changes to petrol subsidies, foreign exchange management and business regulations.
However, it also acknowledged that the reforms had imposed considerable financial pressure on Nigerian households.
The report said petrol prices had increased approximately fivefold from their 2023 levels, contributing to higher living expenses.
It cited a World Bank estimate placing Nigeria’s poverty rate at 63 per cent in 2025.
The assessment also noted improvements in economic indicators, including foreign exchange reserves and inflation figures.
According to the report, Nigeria’s foreign exchange reserves reached $50.45 billion in February 2026.
It further stated that economic growth remained around four per cent in 2025.
While these indicators suggest greater macroeconomic stability, the State Department maintained that security concerns, corruption and regulatory uncertainty continued to affect business confidence.
What the US warning means for foreign investors
For American and other international businesses considering investments in Nigeria, the assessment highlights the importance of reviewing local laws, security conditions and regulatory requirements before committing resources.
Companies may need to obtain independent legal advice, evaluate local business partners and examine the potential consequences of disputes with regulators.
Businesses dependent on imports should also consider port clearance delays and related costs when planning investments.
The warning is not a ban on investment in Nigeria.
The State Department acknowledged opportunities in the country’s economy and noted that foreign investors can own businesses outright in many sectors, subject to applicable restrictions.
Nigeria’s challenge is therefore not only attracting foreign capital but also creating conditions that encourage investors to establish long-term operations.
For Nigerian workers and businesses, the consequences could be significant.
Sustained foreign direct investment can support industrial development, employment, technology transfer and opportunities for domestic suppliers.
However, whether such benefits materialise will depend partly on improvements in security, regulatory predictability, infrastructure and investor protection.
The latest US assessment leaves a central issue for Nigerian policymakers: how quickly the country can translate its economic reforms into safer and more predictable conditions for businesses and their employees.
