US government points to corruption as major obstacle to trade and investment in Nigeria

The United States government has identified corruption as the primary stumbling block hindering trade and investment in Nigeria.

This was highlighted in the 2025 National Trade Estimate Report on Foreign Trade Barriers, published by the Office of the United States Trade Representative.

According to the report, corruption and a lack of transparency in Nigeria’s tender processes are significant concerns for U.S. businesses operating in the country.

The U.S. authorities noted that U.S. companies face daily challenges, including demands from Nigerian officials for ‘facilitative’ payments to ensure smooth operations. These practices, they argue, create an environment that is difficult for foreign companies to navigate and contribute to an unstable business atmosphere.

Efforts to address corruption have been hampered by infighting between ministries and partisan politics, which further complicates efforts to strengthen anti-corruption measures. The report also raised concerns about the Nigerian justice system’s ability to secure convictions and impose appropriate sentences for those found guilty of corruption-related offenses.

Another significant trade barrier raised in the report is the delay in approving import permits for American agricultural products. Despite numerous requests made by the United States since 2019, Nigeria has been slow to approve permits for U.S. food and agricultural exports.

The lack of progress on these requests has hindered U.S. access to the Nigerian market, with the U.S. government accusing Nigeria of inconsistent implementation of technical regulations, sanitary, and phytosanitary measures.

Additionally, the report highlighted the high import duties and associated fees imposed by Nigeria, noting that the country maintains a combined duty and fee structure of over 50 percent on 79 tariff lines, including 17 tariff lines where fees exceed the 70 percent limit set by ECOWAS.

The U.S. government emphasized the importance of resolving these issues to foster greater trade relations and create a more favorable environment for foreign investment in Nigeria.