The United States under President Donald Trump has warned American companies against putting money into Nigeria while insecurity and corruption remain high under the government of President Bola Tinubu.
The warning appears in the US Department of State 2026 Investment Climate Statement on Nigeria. It says security threats, corruption, long port delays and the risk that executives could be held during fights with officials still damage the business climate even after some economic numbers improved.
Removing petrol subsidies and freeing up the foreign exchange market caused big upheaval at first. By early 2026 some signs of calm had returned. Foreign reserves hit a 13 year high of 50.45 billion dollars in February 2026. Growth rose from 3.3 percent in 2023 to around 4 percent later. Inflation fell from 34.8 percent in late 2024 to 15.15 percent by December 2025 after changes to how prices are measured. Capital coming into the country reached 21 billion dollars by October 2025 but 92 percent of that was short term portfolio money rather than long term factory or infrastructure investment.
US direct investment in Nigeria stood at 7.9 billion dollars at the end of 2024, up 25 percent from the year before. Trade between the two countries totaled 14.8 billion dollars in 2025. Nigeria generally allows full foreign ownership in most areas and runs a one stop centre that links 27 agencies to help new investors.
Security remains a major worry that makes many companies hesitate. Attacks on oil facilities in the Niger Delta have dropped but oil theft and illegal bunkering continue. In the north terrorist groups and armed bandits keep expanding and this hurts farming, mining and other businesses. Travel between major northern cities stays dangerous especially after dark.
The report also flags the risk that routine business trips can turn into detention if a company faces regulatory probes, tax fights or other disagreements. Nigerian authorities have used exit bans and holding people as pressure tools to settle disputes or get money and data from foreign firms. Entry and exit restrictions often called watch lists are commonly applied for the same reason.
A clear example is Tigran Gambaryan, an American citizen and former US tax official who worked for the crypto exchange Binance. He and a colleague arrived in Abuja in February 2024 for meetings. Their passports were taken. They were first held without charges in a government guest house. One escaped. Gambaryan later went to Kuje Prison facing money laundering and tax charges. He stayed locked up for nearly eight months until the charges were dropped on humanitarian grounds in October 2024. The State Department says this shows the danger of sharp clashes with regulators.
Airport problems add to the picture. Local media reports over the past year describe security staff targeting passengers seen as rich for shakedowns. Business visa holders have faced longer waits to leave while officers check whether they stuck to meeting only rules and did not do paid work.
Port delays raise costs. Cargo at Apapa and Tin Can Island ports still sits more than 20 days on average because of manual checks. The newer Lekki Deep Seaport handled 9.6 billion dollars in trade in 2025 and ran at about half capacity. The government started the first phase of a National Single Window system on March 27 2026. It aims to cut dwell time below seven days and slash paper work by 80 percent by the end of 2026 by linking customs, food and drug control and standards agencies. Success depends on how well those agencies work together.
Corruption is described as a system wide barrier especially at the ports where customs hold ups slow trade. Nigeria keeps a fairly protective trade setup with high tariffs and rules that push companies toward local production before they can import certain goods. Court system weaknesses leave many people unsure that justice will be steady in criminal or civil cases.
The reforms have improved some big picture numbers but they have also raised living costs sharply. Petrol prices jumped after subsidies ended. A World Bank report put the poverty rate at 63 percent in 2025. The State Department notes that uneven follow through on reforms and the remaining business risks could limit how much the changes help.
For American firms the picture is a large market with real trade and investment chances alongside clear operational hazards. Security conditions, how regulators act, corruption, logistics costs and whether the economic shifts last are all factors companies must weigh before committing money.
