A United States Department of State report has warned American business executives in Nigeria.
The department warned that insecurity, corruption, port inefficiencies, and regulatory uncertainty could significantly hinder investment in Nigeria.
CityNews reports that the department gave the warning in its 2026 Investment Climate Statements on Nigeria.
The report explained that those challenges continue to weigh on the country’s business environment despite signs of macroeconomic stability.
The department said the country’s investment landscape has been shaped by the outcomes of “painful but necessary” structural reforms introduced by the President Bola Tinubu administration.
The report said the removal of fuel subsidies and liberalisation of the foreign exchange market initially triggered significant economic volatility, although early 2026 indicators suggested some stabilisation.
However, it warned that security concerns, administrative bottlenecks and the social consequences of economic reforms remain significant considerations for foreign investors.
“The security environment is a primary variable which gives pause to potential investors,” the report said.
It noted that although attacks on oil infrastructure in the Niger Delta have decreased, oil theft and illegal bunkering persist.
In the North, the expansion of terrorist and ‘bandit’ groups continues to degrade the climate for agribusiness and mining,” the document added.
The report also raised concerns about how regulators treat foreign business executives in disputes, citing the detention of Tigran Gambaryan, a US citizen and Binance executive, for nearly eight months in 2024.
“Furthermore, the use of coercive exit bans and detentions, highlighted by the high-profile nearly eight-month detention in 2024 of U.S. citizen Binance employee Tigran Gambaryan, serves as a cautionary note for foreign executives regarding the risks of aggressive regulatory friction,” it said.
The report said such cases could shape perceptions of Nigeria as a destination for foreign investment.
The department identified inefficiencies at Nigerian seaports as another major challenge for businesses, particularly those dependent on imports and exports.
“Port inefficiency remains a significant ‘hidden tax’ on investment,” the report said.
It noted that the Lekki Deep Seaport handled $9.6 billion in trade in 2025 and operated at 50 per cent capacity, helping to ease pressure on older facilities.
