The United States has criticized Nigeria’s implementation of a temporary suspension of import duties on certain agricultural products, aimed at curbing inflation.

According to the US Department of State’s 2025 Nigeria Investment Climate Statement, the policy had limited impact due to lack of transparency in its implementation.

The report highlights that Nigeria’s economy faced significant challenges in 2024, including a decline from Africa’s second-largest economy to fourth-largest by Gross Domestic Product, partly due to the government’s reforms, such as foreign exchange liberalization and fuel subsidy removal.

In July 2024, the Nigerian government announced a 150-day duty-free import window for key agricultural staples like maize, husked brown rice, wheat, beans, and cowpeas. However, the initiative faltered due to implementation delays and economic realities.

The report notes, “Nigeria’s trade regime is protectionist in key areas. High tariffs and prohibitions on many import items have the aim (if not the effect) of spurring domestic agricultural and manufacturing sector growth.”

The US report also criticizes Nigeria’s power sector, stating that regulatory uncertainty and transmission failures have led to many Nigerians relying on generators, further contributing to rising prices.

“Reform of Nigeria’s power sector is ongoing, but investor confidence continues to be weakened by regulatory uncertainty, deficient generation and transmission infrastructure, insufficient revenue collection, and a limited domestic natural gas supply chain,” the report states.

Corruption remains a significant obstacle to Nigeria’s economic growth, with the country ranking 140 out of 180 countries in Transparency International’s 2024 Corruption Perceptions Index. Businesses report corruption by customs and port officials, leading to extended delays in port clearance processes.

The report highlights security concerns, including violent crime, kidnapping, and terrorism, which deter investors. Despite some progress in starting a business and enforcing contracts, Nigeria remains a challenging place to do business due to regulatory uncertainty, policy inconsistency, and poor infrastructure.

Remittances contributed significantly to Nigeria’s foreign exchange inflows, with an estimated $23.4 billion remitted in 2024, representing 6.4% of GDP. However, a substantial amount of these remittances remains outside Nigeria in foreign bank accounts.

The report also notes that policies aimed at reducing costs for Liquefied Petroleum Gas and pharmaceutical products have not had the desired impact, with prices continuing to rise despite waivers.