Be wary of insecurity, corruption, detention risk in Nigeria, US warns American business executives

The United States Department of State has identified insecurity, corruption, port inefficiencies and regulatory uncertainty as major obstacles to investment in Nigeria despite signs of improving macroeconomic stability, according to The Cable.

In its 2026 Investment Climate Statements on Nigeria, the department said President Bola Tinubu’s “painful but necessary” reforms had helped stabilise parts of the economy after initial volatility.

“The security environment is a primary variable which gives pause to potential investors,” the report said, citing terrorism, banditry, oil theft and illegal bunkering.

It also described port inefficiency as a significant “hidden tax” on investment, noting cargo dwell times exceeding 20 days at Apapa and Tin Can Island ports.

“Corruption remains a systemic barrier, including at seaports where customs delays impede trade,” the report added.

The department said Nigeria attracted $21 billion in capital importation by October 2025, but 92 percent was foreign portfolio investment, while actual foreign direct investment remained modest.

It added that implementation of regulatory reforms remained uneven.