US report blasts Nigeria’s corruption as major barrier to trade, investment

The United States government has squarely pointed the finger at corruption as the primary obstacle hindering trade and investment between the two nations.

In its newly released 2025 National Trade Estimate Report on Foreign Trade Barriers, the Office of the United States Trade Representative (USTR) highlighted that corruption and a lack of transparency in government tender processes are major and persistent concerns for American companies operating in or seeking to enter the Nigerian market.

The report detailed the challenges faced by U.S. firms in their daily operations, citing “inappropriate demands from officials for ‘facilitative’ payments” as a significant issue. These demands, often perceived as bribery, add to the cost of doing business and create an uneven playing field.

Furthermore, the USTR report noted that efforts within Nigeria to strengthen anti-corruption measures have been “hampered by inter-ministerial infighting and partisan politics,” suggesting a lack of cohesive and committed action against graft within the government itself.

The report also raised serious doubts about the Nigerian justice system’s effectiveness in prosecuting and delivering appropriate sentences for individuals and entities involved in corruption-related crimes. “Questions also remain regarding the Nigerian justice system’s capacity to achieve convictions and appropriate sentencing for corruption-related crimes,” the report stated.

In addition to the overarching issue of corruption, the United States government also specifically criticized Nigeria for the continued delays in approving import permits for American agricultural products.

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The USTR labeled this issue a “longstanding trade barrier” that has consistently hindered access for U.S. agricultural exports to the Nigerian market.

According to the report, despite repeated diplomatic efforts to secure market access, Nigeria has failed to act on numerous pending requests concerning food and agricultural imports from the US since 2019.

“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,” the report emphasized.

The USTR report further highlighted inconsistencies in Nigeria’s implementation of technical regulations and sanitary and phytosanitary (SPS) measures, which it said “can create confusion and undermine compliance” for American exporters.

Finally, the report pointed out Nigeria’s high tariff regime on a significant number of goods. “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,” the report concluded, indicating that these high tariffs also act as a substantial barrier to increased trade and investment.