Nigeria Investment Risks remain a concern for foreign businesses, as the United States Department of State has identified cargo delays exceeding 20 days at Apapa and Tin Can Island ports in Lagos as a major obstacle to investment, warning that persistent infrastructure and security challenges continue to weigh on the country’s business environment.
The assessment was contained in the department’s 2026 Investment Climate Statements, which examined the opportunities and risks facing foreign investors in Nigeria amid ongoing economic reforms.
“Port inefficiency remains a significant ‘hidden tax’ on investment,” the report stated, adding that traditional ports in Apapa and Tin Can still suffer from cargo dwell times exceeding 20 days due to manual examinations.
The report acknowledged improvements at Lekki Deep Seaport, which opened in 2023 and handled $9.6 billion in trade in 2025 while operating at 50 per cent capacity.
To address port inefficiencies, the Nigerian government launched the first phase of the National Single Window platform on March 27, 2026. The initiative is designed to integrate agencies, including the Nigeria Customs Service, the National Agency for Food and Drug Administration and Control, and the Standards Organisation of Nigeria, into a single digital workflow.
The report said the platform targets a reduction in cargo dwell time to fewer than seven days and the elimination of 80 per cent of manual paperwork by the end of 2026.
Beyond logistics, the US government identified corruption as a systemic constraint on business operations.
“Corruption remains a systemic barrier, including at seaports where customs delays impede trade,” the report stated.
Security challenges were also highlighted as a major consideration for potential investors, particularly in agriculture, mining and the oil and gas industry.
According to the report, Nigeria’s security environment is a primary variable that gives pause to potential investors.
It noted that although attacks on oil infrastructure in the Niger Delta had declined, crude oil theft and illegal bunkering persisted. In northern Nigeria, the expansion of terrorist and bandit groups continued to undermine the operating environment for agribusiness and mining.
The report further warned that regulatory friction could discourage foreign executives, citing the nearly eight-month detention in 2024 of Tigran Gambaryan, a US citizen and Binance employee.
“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,” it stated.
The assessment also identified electricity supply constraints as a structural impediment to investment, even as Nigeria recorded signs of improved macroeconomic stability in early 2026.
It attributed the changing economic environment partly to reforms introduced by President Bola Tinubu, including the removal of fuel subsidies in October 2024 and the liberalisation of the foreign exchange market.
“The ‘painful but necessary’ structural reforms introduced by President Bola Tinubu have influenced the investment environment,” the report stated.
It added that the removal of fuel subsidies and foreign exchange market liberalisation initially triggered significant macroeconomic volatility, although early 2026 indicators suggested “a fragile stabilisation”.
On investment policy, the report said the Nigerian Investment Promotion Commission Act of 1995, as amended, provides the legal framework for foreign investment and grants foreign investors access to financial instruments.
It also highlighted the Nigerian Exchange Group as an alternative financing channel for businesses, particularly as elevated domestic interest rates have made bank borrowing expensive.
According to the report, the Central Bank of Nigeria’s Monetary Policy Rate reached 27.5 per cent in 2024 before declining to 26.5 per cent in early 2026.
The report noted that the Nigerian Exchange’s All-Share Index rose by 51.19 per cent in 2025 to close at 155,613 points, while total equity market capitalisation reached approximately $71.7 billion at the end of the year.
For importers, manufacturers and distributors, prolonged cargo clearance times can increase storage costs, tie up working capital and delay the delivery of raw materials and finished goods, potentially raising operating costs across supply chains.
