The US government has warned American investors and business executives that routine business trips to Nigeria could result in detention, particularly where their companies are involved in regulatory investigations, tax disputes, or other disagreements with Nigerian authorities.
This warning appeared in the most recent 2026 Nigeria Investment Climate Statement issued by the US Department of State, which voiced concerns about the reported use of arbitrary detention, travel restrictions, and immigration enforcement to pressure foreign businesses operating in Nigeria.
“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.
The US government claimed that Nigerian authorities had in the past used coercive exit bans and detention to force multinational companies into settling commercial disputes or granting financial concessions.
“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 states that Nigerian authorities often rely on entry and exit restrictions, commonly known as watch lists, to pressure companies into resolving outstanding regulatory disputes or alleged tax obligations.
The State Department pointed to the detention of Tigran Gambaryan, an American citizen and former agent of the United States Internal Revenue Service who was serving as an executive at the cryptocurrency exchange Binance, as a clear example of the dangers facing foreign business representatives.
It noted that Gambaryan and another senior Binance executive were taken into custody in February 2024 upon arriving in Abuja for meetings with Nigerian officials.
Their passports were seized, and both executives were at first held without charge in a government guest house before one of them managed to escape.
Gambaryan was later moved to Kuje Prison in Abuja, where he confronted money laundering charges filed by the Economic and Financial Crimes Commission along with tax evasion allegations brought by the Federal Inland Revenue Service (now called the Nigeria Revenue Service).
The report observed that the American executive stayed in detention for roughly eight months as court proceedings carried on. The charges against him were ultimately dropped on humanitarian grounds in October 2024.
The State Department portrayed the episode as a caution to foreign executives about what can happen when they find themselves in regulatory disputes with Nigerian authorities.
Apart from the Binance case, the report voiced concerns about how international business travelers are treated at Nigerian airports.
It claimed that airport security staff had increasingly singled out passengers who appeared wealthy, pointing to investigations by Nigerian media outlets over the previous year.
“Over the past year, investigations by local media outlets highlight ongoing ‘shakedown’ efforts by airport security officials, targeting passengers perceived as wealthy,” the report stated.
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It also revealed that certain foreign travelers who entered Nigeria on business visas had encountered delays when trying to exit the country.
The report stated that immigration officials at times examine the activities carried out by these visitors to establish whether they have breached their visa conditions.
Business visas typically allow meetings and similar commercial activities, but they do not permit paid employment.
The State Department noted that anecdotal reports suggested travelers on such visas had increasingly faced delayed departures from major airports while immigration officers reviewed their activities.
It also cited a September 2025 US executive order designed to protect American citizens from wrongful detention abroad, cautioning that such practices could be seen as efforts to use foreign nationals as political bargaining chips.
Under this order, the US government signaled that actions involving wrongful detention could be viewed as “political pawn” tactics.
These concerns were part of a wider assessment of Nigeria’s investment climate, which recognized gains in macroeconomic stability while pointing to ongoing security, governance, and regulatory difficulties.
The report observed that Nigeria’s investment framework generally allows 100 per cent foreign ownership in most sectors, though some industries are still subject to regulatory restrictions.
It further drew attention to the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which brings together 27 government agencies to streamline investment approvals.
Nevertheless, the State Department asserted that corruption, uneven regulatory enforcement, and shortcomings in the judicial system kept eroding investor confidence.
It noted that public trust in the capacity of Nigerian courts to consistently deliver justice in criminal and civil cases remained weak.
In spite of these concerns, the report revealed that US foreign direct investment in Nigeria stood at $7.9bn at the end of 2024, marking a 25 per cent rise from the previous year.
It further stated that bilateral trade between Nigeria and the United States amounted to $14.8bn in 2025, indicating sustained commercial ties between the two countries despite the investment risks highlighted.
