US flags insecurity, corruption and detention risks as concerns for investors in Nigeria

The United States Department of State has identified insecurity, corruption, port inefficiencies and regulatory uncertainty among continuing challenges facing investors doing business in Nigeria.

The concerns were outlined in the department’s 2026 Investment Climate Statements on Nigeria, which also acknowledged signs of improved macroeconomic stability following major economic reforms.

According to the report, insecurity remains an important consideration for investors, particularly in sectors such as agriculture and mining in areas affected by terrorism and banditry.

The department also highlighted oil theft and illegal bunkering in the Niger Delta, despite a reduction in attacks on oil infrastructure.

Another issue raised was the risk foreign executives may face during serious regulatory disputes.

The report referred to the 2024 detention of Binance executive and US citizen Tigran Gambaryan, who spent nearly eight months in Nigerian custody, as an example likely to affect how foreign executives assess regulatory risk in the country.

Port operations were also identified as a challenge, with the report describing inefficiencies and lengthy cargo-processing periods as additional costs for businesses involved in imports and exports.

At the same time, the State Department noted government efforts to improve the investment environment, including the National Single Window initiative aimed at integrating agencies involved in trade procedures and reducing paperwork.

The report also recognised Nigeria’s large market and policies permitting foreign ownership across most sectors, subject to restrictions and licensing requirements.

It said the country’s regulatory environment was undergoing changes intended to improve predictability, although implementation remained uneven.