Corruption and lack of transparency stay critical obstacles to commerce and funding in Nigeria, in keeping with america authorities.
In its newly launched 2025 Nationwide Commerce Estimate Report on Overseas Commerce Obstacles, the Workplace of america Commerce Consultant (USTR) raised alarm over the difficulties confronted by American corporations working in Nigeria.
“U.S. corporations expertise difficulties in day-to-day operations on account of inappropriate calls for from officers for ‘facilitative’ funds,” the report acknowledged.
It identified that efforts to strengthen anti-corruption measures in Nigeria have been undermined by “inter-ministerial infighting and partisan politics,” including that “questions additionally stay relating to the Nigerian justice system’s capability to attain convictions and applicable sentencing for corruption-related crimes.”
The report additionally criticised Nigeria for stalling on the approval of import permits for American agricultural merchandise, calling it a persistent barrier to market entry.
“Since 2019, america has sought to barter import permits for the export of a number of classes of US meals and agricultural merchandise. Nigeria has been gradual to approve these requests,” it acknowledged.
The USTR additional famous that Nigeria’s weak inspection and certification techniques contributed to lengthy delays at ports, forcing many merchants to show to casual channels.
“It additionally highlighted the nation’s inconsistent utility of sanitary and phytosanitary rules, which it mentioned “can create confusion and undermine compliance.”
On tariffs, the report identified that though Nigeria’s common Most-Favoured Nation tariff charge was 12 per cent in 2023, agricultural merchandise confronted the next charge of 15.9 per cent, and non-agricultural items 11.4 per cent. Along with excessive tariffs, Nigeria imposes a number of supplementary costs.
“Nigeria maintains a mixed responsibility plus different related import charges of fifty per cent or extra on 79 tariff traces.
“These embody 17 tariff traces on which the mixed responsibility plus different related import charges attain or surpass the 70 per cent restrict set by ECOWAS,” it mentioned.
The US authorities additionally condemned Nigeria’s continued import bans on 25 product classes, together with poultry, beef, spaghetti, fruit juice in retail packs, used automobiles over 12 years outdated, soaps, and sure forms of alcohol.
“The Nigeria Customs Service continues to ban the import of 25 completely different product classes,” the report added.
The USTR report additionally painted a grim image of Nigeria’s customs administration, describing it as riddled with corruption, suffering from guide processes, and vulnerable to inconsistent rule enforcement.
“Importers report inconsistent utility of customs rules; prolonged clearance procedures, usually as a result of outdated guide processing techniques; and corruption,” it acknowledged.
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Whereas acknowledging that the Nigerian authorities permitted a $3.1 billion customs modernisation undertaking in 2020, the report famous that the undertaking had suffered vital delays and had turn into mired in authorized disputes.
Public procurement was one other space of concern. The USTR mentioned US corporations struggled to entry authorities contracts as a result of an absence of transparency and recurring cost points.
“Nigerian Authorities businesses don’t all the time observe procurement tips,” it acknowledged, including that “international government-subsidised financing preparations seem in some circumstances to be an important issue within the award of presidency procurements.”
Though the US acknowledged Nigeria’s passage of the Copyright Act, 2022, enforcement of mental property rights was nonetheless discovered missing.
“Counterfeit items, together with prescribed drugs, automotive elements, and different client items, stay broadly out there in Nigeria and sometimes threaten the well being and security of customers,” the report mentioned.
The report additionally raised issues about Nigeria’s digital commerce insurance policies, notably knowledge localisation necessities.
It mentioned, “The Nationwide Info Know-how Growth Company Tips require all knowledge regarding Nigerian residents to be saved inside the nation.” Whereas enforcement of those guidelines has been weak, the USTR mentioned they nonetheless create uncertainty for companies.
Moreover, it pointed to the brand new digital taxes launched by means of Nigeria’s Finance Acts of 2020 and 2021, stating, “US corporations have expressed issues concerning the influence of the tax.”
Restrictions in Nigeria’s reinsurance and promoting sectors had been additionally criticised. The report cited Nigeria’s prohibition of international participation in oil and fuel threat reinsurance and obligatory promoting registration with the Promoting Regulatory Council of Nigeria as areas of concern.
On international trade, the USTR noticed that regardless of reforms initiated by the Central Bank of Nigeria (CBN) in 2023, corporations continued to face delays in fund repatriation.
“Corporations report that the approval course of for the repatriation of funds stays a major barrier to funding by US entities, as it’s often topic to delays and denials,” it mentioned.
As of March 2024, solely $4.6 billion out of an estimated $7 billion in foreign exchange backlogs had been cleared by the CBN, with $2.4 billion nonetheless pending assessment.
Port congestion and maritime insecurity had been additionally flagged. The report mentioned Nigeria’s essential ports, particularly Apapa in Lagos, rank among the many most costly globally.
“The 30-day common delay to clear a container ship makes Apapa in Lagos among the many most costly ports for shipments from america,” it mentioned.
Whereas the USTR acknowledged the Nigerian authorities’s efforts to spice up port effectivity by means of the institution of a Ministry of Marine and Blue Economic system, it concluded that “limitations that limit commerce and restrict funding in Nigeria stay widespread.”
