Insecurity, Corruption, Port Delays: US Report Reveals Major Risks Facing Investors In Nigeria

The United States Department of State has warned American business executives and potential investors about several challenges facing Nigeria’s business environment, including insecurity, corruption, inefficient seaports and uncertainty in regulatory practices.

According to Bush Radio Academy, the warning was contained in the department’s 2026 Investment Climate Statements on Nigeria, which assessed the country’s investment outlook and highlighted obstacles that could discourage foreign businesses despite signs of improving macroeconomic stability.

The report noted that Nigeria’s investment climate has been significantly influenced by structural reforms introduced by President Bola Tinubu’s administration, describing the measures as “painful but necessary.”

It explained that the removal of fuel subsidies and the liberalisation of the foreign exchange market initially triggered considerable economic volatility. However, some indicators recorded in early 2026 suggested that the economy was beginning to show signs of stabilisation.

Despite these developments, the department cautioned that security threats, administrative delays and the social impact of economic reforms continued to pose considerable concerns for foreign investors.

“The security environment is a primary variable which gives pause to potential investors,” the report stated.

It observed that although attacks on oil infrastructure in the Niger Delta had declined, oil theft and illegal bunkering remained persistent problems.

The report also warned that the activities of terrorist groups and armed bandits in northern Nigeria continued to undermine investment opportunities, particularly in agriculture and mining.

Another concern raised by the department was the treatment of foreign business executives during regulatory disputes. It cited the detention of Tigran Gambaryan, an American citizen and Binance executive, who was held in Nigeria for nearly eight months in 2024.

According to the report, the use of travel restrictions and detentions in disputes involving foreign executives could discourage international businesses from investing in the country.

It cautioned that such incidents risk creating the impression that foreign investors could face significant difficulties when dealing with Nigerian regulatory authorities.

The department further identified inefficiencies at the country’s seaports as a major challenge, particularly for companies involved in importing and exporting goods.

The report described port inefficiencies as a significant “hidden tax” on investment, noting that delays and other operational challenges could increase business costs and weaken competitiveness.

However, it acknowledged the contribution of the Lekki Deep Seaport, which reportedly handled $9.6 billion in trade in 2025 while operating at approximately 50 per cent of its capacity.

The facility was identified as helping to ease pressure on older port infrastructure, although the report maintained that broader improvements in security, regulation and logistics would be important in strengthening Nigeria’s appeal to foreign investors.