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Transparency Issues and Corruption Hamper US-Nigeria Trade Relations

United States government has identified corruption as the primary obstacle to trade and investment in Nigeria, as outlined in the 2025 National Trade Estimate Report on Foreign Trade Barriers.

The report, issued by the Office of the United States Trade Representative, highlights corruption, lack of transparency in tender processes, and delays in approving import permits as significant challenges faced by U.S. companies operating in Nigeria.

U.S. firms reportedly encounter inappropriate demands for “facilitative” payments, while efforts to combat corruption are hindered by inter-ministerial conflicts and partisan politics.

The report also raises concerns about the Nigerian justice system’s ability to effectively handle corruption-related cases.

Another major issue is Nigeria’s slow approval of import permits for American agricultural products, which has been a longstanding trade barrier.

Since 2019, the U.S. has sought to negotiate permits for various food and agricultural exports, but progress has been limited.

Additionally, inconsistencies in Nigeria’s implementation of technical regulations and sanitary measures create confusion and hinder compliance.

The report criticizes Nigeria’s high combined duties and fees on numerous tariff lines, exceeding ECOWAS limits on some items.

These systemic issues, combined with challenges in customs administration, contribute to the difficulties of doing business in Nigeria.

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