Amanze Chinonye
The United States has warned American companies that executives travelling to Nigeria could face detention amid regulatory investigations, tax disputes or commercial disagreements with government authorities, highlighting concerns about the country’s business environment.
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The warning appears in the U.S. Department of State’s 2026 Nigeria Investment Climate Statement, which said Nigerian authorities had previously used arbitrary detention and restrictions on leaving the country to exert pressure on foreign businesses, sometimes to obtain information or financial concessions.
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The report also raised concerns about alleged extortion by airport security officials and immigration checks that can delay foreign business travellers attempting to leave Nigeria.
“Over the past year, investigations by local media outlets highlight ongoing ‘shakedown’ efforts by airport security officials, targeting passengers perceived as wealthy,” the report said.
The State Department cited the 2024 detention of Tigran Gambaryan, a U.S. citizen and former Internal Revenue Service agent who worked for cryptocurrency exchange Binance, as an example of the risks facing foreign executives.
Gambaryan and another Binance executive were detained in February 2024 after travelling to Abuja for meetings with Nigerian officials amid a government crackdown on cryptocurrency trading platforms. Gambaryan was later transferred to Kuje prison, where he faced money-laundering charges brought by the Economic and Financial Crimes Commission and tax-related allegations from the Federal Inland Revenue Service.
He remained in custody for about eight months before prosecutors withdrew the money-laundering charges in October 2024 on humanitarian grounds. The case attracted international attention to Nigeria’s handling of disputes involving foreign companies and their executives.
The report also cited instances in which foreign visitors entering Nigeria on business visas experienced delays when attempting to leave, as immigration officials examined whether their activities complied with visa conditions. Business visas generally permit meetings and related commercial engagements but do not authorise paid employment.
The assessment referred to a September 2025 U.S. executive order aimed at protecting American nationals from wrongful detention abroad, placing the concerns within Washington’s broader efforts to address the detention of its citizens overseas.
Despite the risks identified, the State Department acknowledged improvements in Nigeria’s macroeconomic environment and noted that the country permits 100% foreign ownership in most sectors, although some industries remain subject to restrictions.
It also highlighted the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which coordinates 27 government agencies to facilitate business approvals and reduce administrative hurdles.
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However, the report said corruption, inconsistent regulatory enforcement and weaknesses in the judicial system continued to undermine investor confidence and create uncertainty for businesses seeking to resolve commercial disputes.
U.S. foreign direct investment in Nigeria stood at $7.9 billion at the end of 2024, up 25% from a year earlier, according to figures cited in the statement. Bilateral trade between the two countries reached $14.8 billion in 2025.
The annual investment statements, prepared by U.S. diplomatic missions, assess business conditions in more than 170 countries and economies to help American companies evaluate investment opportunities and risks.
The warning does not amount to a blanket U.S. restriction on business travel to Nigeria but highlights Washington’s concerns about the legal and operational risks foreign companies may face when disputes arise with government authorities.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
