The United States Government has warned American investors and business executives about the risk of detention during business visits to Nigeria, particularly when their companies are involved in regulatory investigations, tax disputes or other disagreements with Nigerian authorities.

The warning was contained in the 2026 Nigeria Investment Climate Statement issued by the US Department of State, which raised concerns over alleged arbitrary detention, travel restrictions and immigration enforcement involving foreign businesses operating in the country.

The report alleged that Nigerian authorities had previously used detention and restrictions on movement to pressure multinational companies into resolving commercial disputes or making financial concessions.

It also raised concerns about the use of immigration watch lists and exit restrictions in disputes involving regulatory compliance and alleged tax liabilities.

The State Department cited the detention of Tigran Gambaryan, an American citizen and former United States Internal Revenue Service agent who worked as an executive at cryptocurrency exchange Binance, as an example of the risks facing foreign business representatives.

Gambaryan and another senior Binance executive were detained in February 2024 after travelling to Abuja for meetings with Nigerian officials. Their passports were confiscated, and they were initially held in a government guest house before Gambaryan was transferred to Kuje Prison.

He faced money laundering charges brought by the Economic and Financial Crimes Commission and tax-related allegations filed by the Federal Inland Revenue Service, now known as the Nigeria Revenue Service. The charges against him were eventually withdrawn on humanitarian grounds in October 2024, after approximately eight months in detention.

The report also highlighted concerns about the treatment of foreign travellers at Nigerian airports, citing media investigations into alleged extortion by security personnel targeting passengers perceived to be wealthy.

It further noted that some visitors entering Nigeria on business visas had experienced delays when attempting to leave the country, as immigration officials examined whether their activities complied with visa conditions.

Business visas generally permit meetings and related commercial engagements but do not authorise paid employment in Nigeria.

The State Department linked its concerns to a September 2025 executive order aimed at protecting American nationals from wrongful detention abroad. The order warned against the use of foreign citizens as political bargaining tools.

Despite the concerns, the report acknowledged aspects of Nigeria’s investment framework that permit full foreign ownership in most sectors, while noting that some industries remain subject to restrictions.

It also highlighted the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which coordinates 27 government agencies to facilitate investment approvals.

The report identified corruption, inconsistent regulatory enforcement and weaknesses in the judicial system as continuing challenges for investors.

Nevertheless, US foreign direct investment in Nigeria reached $7.9 billion at the end of 2024, representing a 25 per cent increase over the previous year, while bilateral trade between both countries totalled $14.8 billion in 2025.

The assessment presents a mixed picture of Nigeria’s investment environment, recognising continued commercial engagement while warning that regulatory uncertainty and the treatment of foreign executives could affect investor confidence.