Rising insecurity dents Nigeria’s investment push

…Countries’ travel advisories warning hurts image

Nigeria’s efforts to reposition itself as an investment destination are facing a fresh risk from escalating insecurity, as the U.S. warns citizens against travel to Africa’s most populous nation.

The insecurity situation in Nigeria has worsened with Boko Haram and Islamist militants repeatedly attacking military bases in the north, amid a 17-year insurgency seeking to establish an Islamic state in the northeast, which has killed thousands and displaced millions.

The situation is forcing individuals and businesses to reconsider travel to Nigeria, with the U.S. State Department retaining the country at Level 3 – reconsider travel, while expanding the list of states under its highest-risk category.

A Chinese delegation’s visit to a Nigerian factory was shelved after the Chinese Embassy issued a safety advisory, a top manufacturer’s CEO, who spoke to BusinessDay on anonymity, said.

Experts say countries’ travel advisory warnings have serious investment and trade implications for Nigeria, as they affect investors’ confidence and the country’s perception.

“Countries’ advisory travel warnings reshape the narrative as global partners start asking if cargoes are safe inland, can staff travel, and insurance premiums on Nigeria rise quietly,” said Obiora Madu, an export consultant and chief executive officer of Multimix Group.

“It negatively affects foreign direct investments, technical missions, expatriate deployment and approvals, insurance underwriting, and sovereign risk scoring of Nigeria because of the confidence component,” he explained. “Trade and investment have to do with confidence,” he added.

He noted that this will translate to delayed decisions on Nigeria in global boardrooms.

Muda Yusuf, chief executive officer, Centre for the Promotion of Private Enterprise, said safety advisories from the U.S. are usually taken seriously globally before investment decisions are made.

Yusuf explained that such advisories are detrimental to the country as they affect Nigeria’s global perception, image and efforts to attract investments. He noted that most investment decisions on Nigeria at this time will be put on hold until the security situation improves.

“It’s very detrimental, and it will impact us negatively. In terms of perception, image, and our efforts to attract investments,” he said. “People who are highly risk-averse who come near Nigeria owing to such travel warnings,” he added.

He stressed that while the country’s insecurity has lasted for too long, with the government failing to fully address the situation, it is not as bad as it is being portrayed.

“Yes, we have insecurity in particular areas, but some of these actions are disproportionate. It hasn’t reached the kind of level it is being elevated to,” he noted.

The country recorded $23.2 billion in investment inflows in 2025, with portfolio investment accounting for 85 percent, according to data from the capital importation report.

Who has issued a travel advisory against Nigeria?

Femi Otubanjo, research professor at the Nigerian Institute of International Affairs, explained that every country provides travel advisories for its citizens. He stated that such information is provided in countries where there is usually insecurity and violent attacks.

As of April, the U.S., the United Kingdom and others have issued travel advisories advising their citizens against travel to many parts of Nigeria due to high risks of terrorism and kidnapping as of April 1.

While the U.S., in an April 8, 2026, update, cites crime, kidnapping, terrorism, and civil unrest as key concerns, it currently places Nigeria at Level 3 (Reconsider Travel), with over 23 states under Level 4 (Do Not Travel), and warns of risks in public places.

The United Kingdom, in an April 1 update on its Foreign, Commonwealth & Development Office (FCDO) travel advice, warned its citizens to avoid travel to six states and essential travel only to 15 states.

A source noted that the Chinese embassy also issued a travel advisory on Nigeria; however, BusinessDay could not confirm the claim, as all efforts to speak with a representative from the embassy didn’t yield results, and there is no new information on travel advice on its embassy website.