The United States government has criticized Nigeria for the prolonged delay in granting import permits for American agricultural products, labeling it a persistent trade barrier obstructing access to the Nigerian market.
In its newly released 2025 National Trade Estimate Report on Foreign Trade Barriers, the Office of the United States Trade Representative noted that, despite consistent efforts to open the market, Nigeria had failed to address several pending requests concerning food and agricultural imports from the US.
However, the Nigeria Customs Service has dismissed these claims, describing the US allegations of a largely manual customs process as both “unfair” and “misinformed.”
The report stated, “Since 2019, the United States has sought to negotiate import permits for the export of several categories of US food and agricultural products. Nigeria has been slow to approve these requests.”
The USTR pointed to Nigeria’s weak capacity to verify certificates, inspect goods, and conduct testing, blaming these deficiencies for long clearance delays that have pushed many traders toward informal trade routes.
It also faulted Nigeria’s inconsistent application of sanitary and phytosanitary regulations, creating confusion among exporters.
“Nigeria is not consistent in the implementation of technical regulations and sanitary and phytosanitary measures, which can create confusion and undermine compliance,” it said.
The report further criticized Nigeria’s complex and restrictive import system, revealing that the country’s average Most-Favoured Nation yariff rate stood at 12 per cent in 2023, with agricultural goods facing a higher 15.9 per cent, compared to 11.4 per cent for non-agricultural products.
Additionally, the USTR highlighted that Nigeria imposed multiple supplementary charges, drastically increasing the effective tariff burden on importers.
“Nigeria maintains a combined duty plus other associated import fees of 50 per cent or more on 79 tariff lines. These include 17 tariff lines on which the combined duty plus other associated import fees reach or surpass the 70 per cent limit set by ECOWAS,” the report said.
The report also expressed concern about Nigeria’s continued import prohibitions on 25 product categories, including poultry, beef, spaghetti, fruit juices in retail packs, soaps, used vehicles older than 12 years, and some alcohols, classifying them as trade barriers.
“The Nigeria Customs Service continues to ban the import of 25 different product categories,” it added.
Beyond trade policy, the USTR pointed to broader systemic issues plaguing Nigeria’s customs administration, including allegations of corruption, slow clearance procedures linked to manual processes, and erratic interpretation of trade regulations.
“Importers report inconsistent application of customs regulations; lengthy clearance procedures, often due to outdated manual processing systems; and corruption,” it said.
Although Nigeria’s Federal Government approved a $3.1 billion customs modernisation project in 2020, aimed at automating processes, the USTR noted that the initiative had been delayed and was entangled in legal battles.
On the issue of public procurement, the report stated that US companies face considerable barriers accessing government contracts due to transparency gaps and payment challenges.
“Nigerian Government agencies do not always follow procurement guidelines,” it said. “Foreign government-subsidized financing arrangements appear in some cases to be a crucial factor in the award of government procurements.”
While acknowledging reforms such as the enactment of the Copyright Act, 2022, the USTR said enforcement of intellectual property rights remains weak.
“Counterfeit goods, including pharmaceuticals, automotive parts, and other consumer goods, remain widely available in Nigeria and often threaten the health and safety of consumers,” it stated.
The report also flagged concerns regarding digital trade restrictions, particularly the National Information Technology Development Agency Guidelines requiring that all Nigerian citizen data be stored domestically. Although not strictly enforced, the USTR said the rules create uncertainty for foreign businesses.
It also referenced the Finance Acts of 2020 and 2021, which introduced new digital services taxes on foreign providers, sparking worries among American companies.
“US companies have expressed concerns about the impact of the tax,” the report said.
Further criticisms were directed at restrictions in Nigeria’s reinsurance and advertising sectors, such as prohibitions on foreign involvement in oil and gas risk reinsurance and mandatory advertising registration through the Advertising Regulatory Council of Nigeria (ARCON).
Turning to the foreign exchange landscape, the report said that although the Central Bank of Nigeria (CBN) moved to unify exchange rates and removed forex restrictions on 43 items in 2023, hurdles persist.
“Companies report that the approval process for the repatriation of funds remains a significant barrier to investment by US entities, as it is frequently subject to delays and denials,” the USTR stated.
According to the report, out of the estimated $7 billion in forex backlogs, $4.6 billion had been cleared by the CBN as of March 2024, with $2.4 billion still undergoing review.
Highlighting Nigeria’s infrastructure challenges, the USTR pointed out that the main ports — notably Apapa in Lagos — are among the most expensive globally, due to congestion, poor infrastructure, and maritime insecurity.
“The 30-day average delay to clear a container ship makes Apapa in Lagos among the most expensive ports for shipments from the United States,” it noted.
Although it acknowledged Nigeria’s efforts to improve port efficiency with the establishment of a Ministry of Marine and Blue Economy, the report ultimately concluded that “barriers that restrict trade and limit investment in Nigeria remain widespread.”
Customs Pushes Back
Reacting strongly, the Nigeria Customs Service rejected the US allegations, asserting that it had made significant progress in automating operations.
Speaking to The PUNCH, Abdullahi Maiwada, the NCS’s National Public Relations Officer, emphasized that Customs’ role is limited to implementing fiscal policies, not designing them.
“As far as policy issues are concerned, whether items are prohibited or have levies imposed, the Nigeria Customs Service is only responsible for implementing fiscal policies, not formulating them,” Maiwada said. “However, as an agency critical to policy implementation, we remain responsive and responsible in what we do.”
He pointed out that the NCS had been collaborating with international counterparts, including US agencies, to bolster operational efficiency.
“Last year, we met with the US Customs and Border Protection Agency and discussed reviving the existing Customs Mutual Administrative Agreement, focusing on information sharing, capacity building, and other collaborative areas,” he said.
Maiwada cited several initiatives aimed at enhancing trade facilitation, including the launch of the Authorised Economic Operator programme and the Advanced Ruling System for legally binding decisions on classification, valuation, and rules of origin.
“In addition, we have conducted Time Release Studies at the Tincan Island Port to identify scientifically the causes of delays in cargo clearance. The results will soon be made available,” he added.
Directly addressing the USTR’s assertion that Nigeria’s customs system remains manual, Maiwada insisted the allegation was both outdated and unjust.
“I think it is an aberration and very unfair to say Nigeria Customs operates manually,” he said. “For the first time in our history, we have developed an indigenous clearance software known as the B’Odogwu Unified Customs Management System, which has already been rolled out at the PTML Command and will be extended to all area commands.”
He highlighted further modernization efforts, such as new non-intrusive scanners at Apapa port and advanced geospatial intelligence tools for border management.
“We are one of the most automated Customs systems in Africa,” he stated. “Anyone can go and verify that.”
While reiterating that Customs does not make trade policies, Maiwada emphasized the agency’s commitment to improving its processes to meet international standards.
“We will continue to do our job and improve against all odds. But we are not operating a manual process,” he concluded.
Meanwhile, the Director of Press and Public Relations at the Ministry of Industry, Trade and Investment, Dr Adebayo Thomas, declined fresh comments, saying the minister had already addressed the issue previously.
In an earlier statement regarding US tariffs on Nigerian exports under former President Donald Trump, Nigeria had acknowledged that the punitive measures could disrupt trade relations and undermine the competitiveness of Nigerian products.
Nigeria’s Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, noted the potential adverse impacts.
“This development strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance into more economies across the globe,” she said.
