The US Department of State has raised concerns about the potential detention of foreign business representatives during regulatory disputes in Nigeria, highlighting governance and legal uncertainties that could affect investor confidence despite growing bilateral trade.
The United States Government has warned American investors and business executives that routine business trips to Nigeria could expose them to detention risks, particularly when their companies are involved in regulatory investigations, tax disputes or other disagreements with Nigerian authorities. The warning appears in the US Department of State’s 2026 Nigeria Investment Climate Statement, which raises concerns about the alleged use of arbitrary detention, travel restrictions and immigration enforcement to pressure foreign businesses operating in the country.
“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 states. According to the State Department, Nigerian authorities have previously used exit restrictions and detention as leverage in commercial or regulatory disputes involving multinational companies, including situations in which businesses were pressed to resolve disagreements or make 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,” the report states. The assessment identifies entry and exit restrictions, commonly referred to as watch lists, as a concern for foreign companies dealing with unresolved regulatory disputes or alleged tax liabilities.
The Binance Case
The State Department cited the detention of Tigran Gambaryan, an American citizen and former United States Internal Revenue Service agent who was serving as an executive at cryptocurrency exchange Binance, as a prominent example of the risks facing foreign business representatives. Gambaryan and another senior Binance executive, Nadeem Anjarwalla, travelled to Abuja in February 2024 for meetings with Nigerian officials amid a dispute involving the cryptocurrency exchange. Their passports were confiscated, and both executives were initially held at a government guest house before Anjarwalla escaped custody.
Gambaryan was subsequently transferred to Kuje Prison in Abuja, where he faced money laundering charges brought by the Economic and Financial Crimes Commission (EFCC), alongside tax-related allegations filed by the Federal Inland Revenue Service, now known as the Nigeria Revenue Service. He remained in detention for approximately eight months before the money laundering proceedings were discontinued in October 2024 on humanitarian grounds. The tax proceedings against Binance were also subsequently discontinued.
The State Department referenced the case as an illustration of the potential consequences foreign executives may face when commercial or regulatory disagreements develop into legal proceedings involving Nigerian authorities.
Concerns Over Airport Enforcement
Beyond the Binance case, the report raised concerns about the treatment of international business travellers at Nigerian airports. It cited investigations by Nigerian media organisations alleging that airport security personnel had targeted passengers perceived to be wealthy in attempts to solicit money. “Over the past year, investigations by local media outlets highlight ongoing ‘shakedown’ efforts by airport security officials, targeting passengers perceived as wealthy,” the report states. The assessment also highlighted reports of foreign travellers entering Nigeria on business visas experiencing delays when attempting to leave the country.
According to the State Department, immigration officials sometimes scrutinise visitors’ activities to determine whether they have complied with the conditions of their visas. Business visas generally permit meetings and related commercial engagements but do not ordinarily authorise paid employment in Nigeria. The report said anecdotal accounts indicated that some travellers had experienced delayed departures from major airports while immigration officials reviewed their activities. It also referenced a September 2025 US executive order intended to protect American nationals from wrongful detention abroad. The order identifies wrongful detention as a potential instrument of political coercion, including situations in which foreign nationals are treated as bargaining tools.
Investment Opportunities and Regulatory Challenges
The concerns form part of a broader assessment of Nigeria’s investment environment, which acknowledges improvements in macroeconomic stability while identifying continuing challenges involving security, governance and regulatory enforcement. The State Department noted that Nigeria generally permits 100 per cent foreign ownership in most sectors, although certain industries remain subject to restrictions and additional regulatory requirements. It also highlighted the Nigerian Investment Promotion Commission’s One-Stop Investment Centre, which coordinates 27 government agencies to facilitate investment procedures and approvals.
However, the report maintained that corruption, inconsistent regulatory enforcement and weaknesses in the judicial system continued to undermine investor confidence. It also raised concerns about public confidence in the ability of Nigerian courts to deliver justice consistently in criminal and civil matters. Despite these concerns, American commercial engagement with Nigeria remains substantial. According to the report, US foreign direct investment in Nigeria reached $7.9 billion at the end of 2024, representing a 25 per cent increase over the preceding year.
Bilateral trade between Nigeria and the United States reached $14.8 billion in 2025, reflecting continued commercial engagement between the two countries despite the investment risks identified in the assessment. The report therefore presents a mixed picture of Nigeria’s investment climate: a market with substantial commercial opportunities and continuing international economic relationships, but one in which concerns about regulatory consistency, legal processes and the treatment of foreign business representatives remain significant.
