U.S. identifies corruption as Key obstacle to investment in Nigeria

Onome Amuge

The United States has voiced concerns regarding corruption and a lack of transparency in Nigeria’s tender processes, casting doubt on the efficiency of the country’s judicial system in tackling illicit practices. 

These concerns were highlighted in the latest 2025 National Trade Estimate Report on Foreign Trade Barriers, released by the Office of the United States Trade Representative.

The report noted that corruption remains a substantial impediment to trade and investment for US companies operating in Nigeria. It details how American firms frequently encounter inappropriate demands from officials for facilitative payments, which disrupt their day-to-day operations.

Furthermore, the USTR report points to internal governmental friction and partisan political dynamics as factors that have hindered efforts to strengthen anti-corruption measures within Nigeria. 

A particularly critical assessment is made of the Nigerian justice system, with the US questioning its capacity to achieve convictions and appropriate sentencing for corruption-related crimes.

Import restrictions and fees draw criticism

Beyond governance issues, the US report also raises concerns over Nigeria’s trade policies. It pointed out the protracted delays in approving import permits for various US food and agricultural products, some pending since 2019.

Nigeria’s import fee structure also came under scrutiny, with the report highlighting that Nigeria maintains a combined duty plus other associated import fees of 50 per cent or more on 79 tariff lines. 

Notably, it added that 17 tariff lines on which the combined duty plus other associated import fees reach or surpass the 70 per cent limit set by ECOWAS.

The Nigeria Customs Service’s continued prohibition on the import of 25 different product categories was also flagged as a barrier to trade. These banned items include poultry, beef, spaghetti, fruit juice in retail packs, used vehicles over 12 years old, soaps, and certain alcoholic beverages.

Systemic issues in customs administration

The US report dwelled on the systemic challenges within Nigeria’s customs administration, citing corruption, manual processes, and inconsistent interpretation of trade rules as impediments to smooth trade flows.