US Cautions US Investors Over Detention Risks in Nigeria

American companies and investors have been told that routine business travel to Nigeria can end in detention if their firm is under regulatory investigation or involved in a tax or commercial dispute with Nigerian authorities.

The warning appears in the 2026 Nigeria Investment Climate Statement published by the US Department of State, which also flags the alleged use of travel bans and immigration enforcement as leverage against foreign businesses.

“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 State Department said, “Nigerian authorities have previously resorted to coercive exit bans and arbitrary detention in commercial or regulatory disputes, sometimes to obtain data or financial concessions from multinational firms.”

Watch lists restricting entry and exit are frequently used to push companies into settling outstanding regulatory disagreements or alleged tax liabilities, according to the report.

The report cites the case of Tigran Gambaryan, a US citizen and former Internal Revenue Service agent who was working at cryptocurrency exchange Binance, as a key illustration of the risk.

Gambaryan and another Binance executive were detained in February 2024 after travelling to Abuja for meetings with Nigerian officials. Their passports were confiscated, and both were initially held without charge in a government guest house before one escaped.

Gambaryan was subsequently moved to Kuje Prison in Abuja, where he faced money laundering charges from the Economic and Financial Crimes Commission and tax evasion allegations from the Federal Inland Revenue Service.

He remained in custody for about eight months before the charges were dropped on humanitarian grounds in October 2024.

The report also flagged the treatment of international business travellers at Nigerian airports, alleging that security officials have increasingly targeted passengers perceived as wealthy.

“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.

Some foreigners who entered on business visas experienced delays when trying to leave, with immigration officers checking whether their activities breached visa conditions.

Business visas permit meetings and related commercial engagements but not paid employment.

The report referenced a September 2025 US executive order designed to protect American nationals from wrongful detention abroad, warning that such practices could be treated as attempts to use foreign citizens as political bargaining chips.

The warning forms part of a wider assessment that credits Nigeria with improvements in macroeconomic stability while pointing to persistent security, governance and regulatory hurdles.

The report noted that Nigeria permits 100 percent foreign ownership in most sectors, although some industries face restrictions, and highlighted the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which coordinates 27 government agencies to ease approvals.

It said corruption, inconsistent regulatory enforcement and a weak judicial system continued to undermine investor confidence, noting low public confidence in Nigerian courts to deliver consistent justice.

Despite these concerns, US foreign direct investment in Nigeria reached $7.9 billion at the end of 2024, a 25 percent increase over the previous year.

Bilateral trade between the two countries stood at $14.8 billion in 2025.