Trump Warns American Investors Against Investing in Nigeria Over Escalating Corruption, Insecurity Under Tinubu

 

The administration of United States President Donald Trump has raised concerns about Nigeria’s investment climate, citing insecurity, corruption, port inefficiencies and regulatory uncertainty as major obstacles facing American businesses operating in the country.

In its 2026 Investment Climate Statements on Nigeria, the United States Department of State warned that these challenges could significantly hinder investment despite signs of macroeconomic stability. The report examined the effects of Nigeria’s economic reforms and the business risks foreign investors may encounter.

The department said Nigeria’s investment environment had been shaped by the outcomes of what it described as “painful but necessary” structural reforms introduced by the Bola Tinubu-led government. It noted that the removal of fuel subsidies and the liberalisation of the foreign exchange market initially triggered significant economic volatility, although indicators in early 2026 suggested some stabilisation.

Despite these developments, the report identified insecurity as a major concern for potential investors. It said attacks on oil infrastructure in the Niger Delta had declined, but oil theft and illegal bunkering remained persistent problems. In northern Nigeria, the expansion of terrorist groups and armed gangs continues to affect the business environment, particularly in agribusiness and mining.

The report also raised concerns about the treatment of foreign business executives during regulatory disputes. It cited the detention of Tigran Gambaryan, an American citizen and Binance executive, who was detained in Nigeria for nearly eight months in 2024.

According to the department, cases involving detention and restrictions on movement could discourage foreign executives from doing business in the country.

“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,” the report stated.

Nigeria’s seaport operations were also identified as a significant obstacle to trade and investment. The department described port inefficiency as a major hidden cost for businesses, particularly those dependent on imported raw materials, equipment and other goods. Delays in cargo clearance and administrative bottlenecks, it said, could increase operating expenses and affect the competitiveness of businesses.

However, the report acknowledged developments in Nigeria’s port infrastructure, particularly the Lekki Deep Seaport. It noted that the facility handled $9.6 billion in trade in 2025 while operating at 50 per cent capacity, helping to ease pressure on older port facilities.

The report nevertheless indicated that wider infrastructure and administrative problems continued to affect the investment environment.

The assessment adds to the scrutiny of the Tinubu administration’s economic reforms, which have included the removal of petrol subsidies and changes to the foreign exchange market.

While the report recognised signs of economic stabilisation, it warned that insecurity, corruption, regulatory uncertainty and inefficient public services remained significant considerations for American businesses weighing investment opportunities in Nigeria.

Culled from Parallel Facts