Corruption and lack of transparency remain serious obstacles to trade and investment in Nigeria, according to the United States government.
In its newly released 2025 National Trade Estimate Report on Foreign Trade Barriers, the Office of the United States Trade Representative (USTR) raised alarm over the difficulties faced by American companies operating in Nigeria.
“U.S. firms experience difficulties in day-to-day operations as a result of inappropriate demands from officials for ‘facilitative’ payments,” the report stated.
It pointed out that efforts to strengthen anti-corruption measures in Nigeria have been undermined by “inter-ministerial infighting and partisan politics,” adding that “questions also remain regarding the Nigerian justice system’s capacity to achieve convictions and appropriate sentencing for corruption-related crimes.”
The report also criticised Nigeria for stalling on the approval of import permits for American agricultural products, calling it a persistent barrier to market access.
“Since 2019, the United States has sought to negotiate import permits for the export of several categories of US food and agricultural products. Nigeria has been slow to approve these requests,” it stated.
The USTR further noted that Nigeria’s weak inspection and certification systems contributed to long delays at ports, forcing many traders to turn to informal channels.
“It also highlighted the country’s inconsistent application of sanitary and phytosanitary regulations, which it said “can create confusion and undermine compliance.”
On tariffs, the report pointed out that although Nigeria’s average Most-Favoured Nation tariff rate was 12 per cent in 2023, agricultural products faced a higher rate of 15.9 per cent, and non-agricultural goods 11.4 per cent. In addition to high tariffs, Nigeria imposes several supplementary charges.
“Nigeria maintains a combined duty plus other associated import fees of 50 per cent or more on 79 tariff lines.
“These include 17 tariff lines on which the combined duty plus other associated import fees reach or surpass the 70 per cent limit set by ECOWAS,” it said.
The US government also condemned Nigeria’s continued import bans on 25 product categories, including poultry, beef, spaghetti, fruit juice in retail packs, used vehicles over 12 years old, soaps, and certain types of alcohol.
“The Nigeria Customs Service continues to ban the import of 25 different product categories,” the report added.
The USTR report also painted a grim picture of Nigeria’s customs administration, describing it as riddled with corruption, plagued by manual processes, and prone to inconsistent rule enforcement.
“Importers report inconsistent application of customs regulations; lengthy clearance procedures, often due to outdated manual processing systems; and corruption,” it stated.
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While acknowledging that the Nigerian government approved a $3.1 billion customs modernisation project in 2020, the report noted that the project had suffered significant delays and had become mired in legal disputes.
Public procurement was another area of concern. The USTR said US companies struggled to access government contracts due to a lack of transparency and recurring payment issues.
“Nigerian Government agencies do not always follow procurement guidelines,” it stated, adding that “foreign government-subsidised financing arrangements appear in some cases to be a crucial factor in the award of government procurements.”
Although the US acknowledged Nigeria’s passage of the Copyright Act, 2022, enforcement of intellectual property rights was still found lacking.
“Counterfeit goods, including pharmaceuticals, automotive parts, and other consumer goods, remain widely available in Nigeria and often threaten the health and safety of consumers,” the report said.
The report also raised concerns about Nigeria’s digital trade policies, particularly data localisation requirements.
It said, “The National Information Technology Development Agency Guidelines require all data concerning Nigerian citizens to be stored within the country.” While enforcement of these rules has been weak, the USTR said they still create uncertainty for businesses.
Additionally, it pointed to the new digital taxes introduced through Nigeria’s Finance Acts of 2020 and 2021, stating, “US companies have expressed concerns about the impact of the tax.”
Restrictions in Nigeria’s reinsurance and advertising sectors were also criticised. The report cited Nigeria’s prohibition of foreign participation in oil and gas risk reinsurance and mandatory advertising registration with the Advertising Regulatory Council of Nigeria as areas of concern.
On foreign exchange, the USTR observed that despite reforms initiated by the Central Bank of Nigeria (CBN) in 2023, companies continued to face delays in fund repatriation.
“Companies report that the approval process for the repatriation of funds remains a significant barrier to investment by US entities, as it is frequently subject to delays and denials,” it said.
As of March 2024, only $4.6 billion out of an estimated $7 billion in forex backlogs had been cleared by the CBN, with $2.4 billion still pending review.
Port congestion and maritime insecurity were also flagged. The report said Nigeria’s main ports, especially Apapa in Lagos, rank among the most expensive globally.
“The 30-day average delay to clear a container ship makes Apapa in Lagos among the most expensive ports for shipments from the United States,” it said.
While the USTR acknowledged the Nigerian government’s efforts to boost port efficiency through the establishment of a Ministry of Marine and Blue Economy, it concluded that “barriers that restrict trade and limit investment in Nigeria remain widespread.”