JamzNG Latest News, Gist, Entertainment in Nigeria
The United States government once again raised a serious concern over constant obstacles for trade and investment in Nigeria.
The agency identifies corruption, lack of transparency, and regulations that limit as the main obstacles to investment in the most populous countries in Africa.
In 2025 National Trade Estimation Report on Foreign Trade Barriers, released on March 1, the United States Trade Representative Office (USTR) detailed various problems that hamper the American business operating in Nigeria.
The report was seen by the media on Monday.
This report illustrates a serious picture of the largest investment climate in the economy in Africa, where systemic inefficiency continues to frustrate local and foreign investors.
According to the USTR, corruption remains a big challenge. US companies that do business in Nigeria often face improper demands for “facilitative” payments from officials, creating daily operational obstacles. Efforts to strengthen the Nigerian anti-corruption framework, recorded by the report, are often damaged by inter-statement conflicts and partisan politics.
“The question is also fixed on the capacity of the Nigerian justice system to achieve appropriate punishment and punishment for crimes related to corruption,” added the USTR, highlighting the extensive doubt about the effectiveness of the country’s justice process.
Outside of corruption, the report criticized the handling of Nigeria which was slow over US agriculture imports. Although repeated efforts since 2019 to negotiate approval for various food and agricultural products, Nigerian authority is slowly acting, effectively closing valuable markets for American exporters.
Further reports refer to Nigerian weak infrastructure for a review of certificates, inspection of goods, and product testing, which has contributed to a significant delay in customs permit. Many traders, observed, have been forced to switch to informal channels to move their goods.
Sanitation and Phytosanitary regulations, which are intended to protect public health, are also inconsistent in Nigeria, creating confusion between exporters and further complicate trade procedures.
Also read: Keyamo confirms the re -opening of the airport to Ibiam faster than the schedule
The USTR also does not avoid criticizing a wider Nigerian import regime. Although the average state tariff level of the country reached 12 percent in 2023, agricultural imports face a steeper level of 15.9 percent, while non-agricultural goods withdraw the 11.4 percent level. Additional import costs significantly encourage actual costs to import goods even higher, in some cases exceeding agreed limits based on ecowas rules.
In addition, Nigeria continues to enforce import ban on 25 different categories of goods, including poultry, beef, spaghetti, fruit juice in retail packages, and used vehicles that are older than 12 years. The USTR describes this prohibition as the main obstacle for trading.
Problems in Nigeria Customs Administration also display prominently in this report. Importers report the inconsistency that is often in the enforcement of customs regulations, long cleaning procedures related to the outdated manual system, and rampant corruption. Although the Nigerian government approved the Customs Modernization project worth $ 3.1 billion in 2020, this initiative has experienced repeated delays and is now mired in legal disputes.
When it comes to public procurement, US companies are reported to have difficulty accessing Nigerian government contracts, with concerns about the lack of transparency and irregular contract payment practices. In many cases, the agency failed to comply with the procurement guidelines, although the existing requirements for supervision from the Public Procurement Bureau.
Ustr acknowledged some progress, such as the ratification of the Copyright Law in 2022, but said law enforcement remained weak. Fake goods ranging from drugs to automotive parts are still widely available, causing significant risk of consumer safety.
In the digital economy, concerns remain in the Nigerian localization rules, which require all data about Nigerian citizens to be stored domestically. Although law enforcement has been evenly distributed, this guideline continues to create uncertainty for technology companies. Financial actions in 2020 and 2021, which introduced new taxes on foreign digital services, also attracted criticism from US companies.
The report highlighted further restrictions in the Nigerian reinsurance and advertising sectors, including the prohibition on foreign involvement in oil and gas risk reinsurance and the registration of local advertising is mandatory.
Meanwhile noted that the reform of the Nigerian central bank in 2023 was a positive step, including the unification of exchange rates and raising forex restrictions on 43 items that were previously prohibited, challenges remain. Delay and rejection in repatriation of funds continues to prevent US investors. In March 2024, the central bank was reported to have cleaned $ 4.6 billion from $ 7 billion in forex backlogs, leaving $ 2.4 billion was still reviewed.
Nigeria’s main port, especially in Lagos, is also chosen. According to the USTR, congestion, infrastructure lack, and maritime insecurity has made one of the most expensive ports for US delivery, with a 30 -day postponement to clean container vessels.
Although the formation of the Ministry of Maritime Affairs and Blue Economy has been praised as a step towards increasing port efficiency, the USTR concluded that “Obstacles that limit trade and limiting investment in Nigeria remains widespread.”
Join the conversation
Supports Nigeria’s ripples, resistant Journalism Solutions
A balanced and fearful journalism that is driven by data comes with enormous financial costs.
As a media platform, we ask for leadership accountability and will not trade the right to suppress freedom and freedom of speech for a piece of cake.
If you like what we do, and ready to uphold journalism solutions, friendly Nigerian ripples cause.
Your support will help ensure that residents and institutions continue to have free access to credible and reliable information for community development.
Donation now
