American businesses are growing wary of Nigeria’s complex regulatory environment and border restrictions, which have stalled trade, said Richard Mills, the U.S. Ambassador to Nigeria.
This comes as the U.S. launches its “Commercial Diplomacy Strategy for Sub-Saharan Africa,” aiming to shift relations from aid to trade and investment for “mutual prosperity.” Mills said, “We’re engaging African nations not as aid recipients, but as capable commercial partners,” but success depends on Nigeria gaining American investors’ confidence.
He noted concerns about frequent foreign exchange policy changes, port congestion, unclear agency mandates, and a heavy tax burden, with some companies facing up to 67 different taxes, including levies on wheelbarrows. These challenges have forced some U.S. firms to leave Nigeria, while others remain cautious.
Despite this, American capital remains strong in Nigeria’s tech sector, accounting for 60% of venture capital inflows.
Mills criticised import tariffs restricting agricultural goods, linking some tension to 14% tariffs imposed by former President Trump. He urged, “Come back to us and address the trade barriers to U.S. imports into Nigeria, so we can make those tariffs go away.”
The U.S. will soon launch a five-year Commercial and Investment Partnership with Nigeria, targeting agriculture, digital economy, and infrastructure. Mills emphasised, “We’re not asking Nigeria to choose a side,” encouraging informed business decisions in the free market.