The United States Department of State has issued a cautious assessment of Nigeria's business landscape, highlighting persistent security threats, systemic corruption, port bottlenecks, and regulatory detention risks that continue to weigh heavily on foreign investment. The assessment was part of the 2026 Investment Climate Statements on Nigeria, which evaluated the impact of structural reforms introduced by President Bola Tinubu's administration.
The report acknowledged that the removal of fuel subsidies and the liberalization of the foreign exchange market have led to positive fiscal shifts, including foreign reserves hitting a 13-year peak of $50.45 billion in February 2026. However, these adjustments have carried severe social costs, with an April 2026 World Bank assessment estimating a national poverty rate of 63 percent in 2025, despite GDP growth stabilizing around four percent.
Security remains a primary concern for potential investors, with militant attacks on oil infrastructure in the Niger Delta easing but illegal bunkering and crude oil theft persisting. In the northern regions, the expansion of terrorist networks and bandit groups severely degrades the operating environment for agribusiness and mining. The report warned foreign executives about the hazards of aggressive regulatory friction, citing high-profile cases like the detention of US citizen and Binance executive Tigran Gambaryan in 2024.
Logistical inefficiency at Nigerian seaports is another major impediment to international trade, with the State Department describing port congestion and delays as a significant "hidden tax" on investment. While the Lekki Deep Seaport handled $9.6 billion in trade in 2025 and operated at 50 percent capacity, traditional terminals in Apapa and Tin Can Island continue to suffer from cargo dwell times exceeding 20 days due to manual cargo examinations.
The federal government launched Phase One of the National Single Window platform on March 27, 2026, aiming to integrate trade agencies into a single digital workflow. The initiative targets slashing cargo dwell times to under seven days and eliminating 80 percent of manual paperwork by the end of the year. This move is expected to improve the business environment and attract more foreign investment.
The assessment scrutinized the structure of incoming capital, with Nigeria recording $21 billion in capital importation by October 2025. However, 92 percent of this figure comprised foreign portfolio investment, while actual foreign direct investment in physical infrastructure remained modest. Bilateral trade between Nigeria and the US stood at $14.8 billion in 2025, with cumulative US FDI reaching $7.9 billion by the end of 2024.
Systemic corruption, protectionist trade regimes, and uneven policy implementation continue to challenge international firms navigating Nigeria's evolving regulatory framework. The US State Department's report highlights the need for Nigeria to address these issues to improve the business environment and attract more foreign investment.
Key points
- The US State Department has warned American investors of security threats, corruption, and regulatory risks in Nigeria.
- Nigeria's business landscape is affected by persistent security threats, systemic corruption, port bottlenecks, and regulatory detention risks.
- The country's macroeconomic stabilization has carried severe social costs, with a national poverty rate estimated at 63 percent in 2025.
