The United States government has warned American corporate executives and investors about detention risks in Nigeria, particularly during routine business trips involving companies facing regulatory audits, tax disputes, or corporate conflicts with Nigerian authorities.
The advisory was released in the U.S. Department of State’s 2026 Nigeria Investment Climate Statement. The document highlights growing official concerns over Detention Risks in Nigeria, including the alleged use of immigration enforcement measures, restrictive exit bans and arbitrary detentions by local authorities to exert leverage over foreign enterprises.
“U.S. businesses are advised that standard business trips can escalate into detention if the firm is under regulatory suspicion or faces charges by Nigerian authorities,” the report stated.
According to the report, Nigerian government agencies have previously employed incarceration and administrative travel restrictions as coercive mechanisms to compel multinational firms into resolving commercial disputes or agreeing to financial settlements.
“Nigeria has previously employed coercive exit bans and arbitrary detention as leverage in commercial or regulatory disputes, and to extract data or financial concessions from multinational firms,” it stated.
The report highlights that Nigerian authorities frequently utilize entry and exit restrictions, including watch lists, as leverage to compel foreign enterprises to settle outstanding regulatory disputes or alleged tax liabilities.
To illustrate the operational risks confronting foreign corporate representatives, the State Department cited the detention of Tigran Gambaryan—a former U.S. Internal Revenue Service agent and executive at cryptocurrency exchange Binance—who was detained by Nigerian officials amid a regulatory dispute.
Following his initial detention, Gambaryan was transferred to Kuje Prison in Abuja, where the Economic and Financial Crimes Commission (EFCC) formally charged him with money laundering.
The State Department noted that the incident highlighted the potential consequences foreign executives face when embroiled in regulatory conflicts with Nigerian authorities.
Weaknesses in the judicial system
The statement also highlighted the Nigerian Investment Promotion Commission’s One-Stop Investment Center, designed to streamline approval processes by coordinating functions across 27 government agencies.
However, the State Department noted that persistent corruption, inconsistent regulatory enforcement, and structural weaknesses in the judiciary continue to undermine investor confidence. It emphasized that public trust remains low regarding the capacity of Nigerian courts to deliver consistent and impartial justice in both civil and criminal matters.
Despite these institutional challenges, the report indicated that U.S. foreign direct investment in Nigeria grew by 25 percent to reach $7.9 billion by late 2024.
Additionally, it noted that bilateral trade between the United States and Nigeria rose to $14.8 billion in 2025, demonstrating resilient commercial ties despite highlighted operational risks.
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