Analysts Lists Consequences of US Ban on Nigeria, $4 Billion at Risk
- The US suspended several categories of immigrant and non-immigrant visas for Nigerians, citing security and concerns about overstays
- Economists warn the move could disrupt remittances, business travel, education and investment flows, adding that US-sourced remittances could cost Nigeria between $3 billion and $4 billion annually
- Business, education, and foreign investment links between the two countries may face growing pressure if the restrictions persist
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria could face significant economic consequences following new travel restrictions announced by the United States, with analysts warning that the measures may cost the country billions of dollars each year if the ban persists.
Source: Getty Images
The US ban on Nigeria
According to a presidential proclamation published on the White House website on Tuesday, the US government has suspended the entry of Nigerian nationals as immigrants and under several non-immigrant visa categories.
These include B-1 (business), B-2 (tourism), combined B-1/B-2, F (academic studies), M (vocational studies) and J (exchange programmes).
The affected visa classes account for a large share of visas issued annually by US diplomatic missions in Nigeria and cover key areas such as business travel, tourism, education and exchange programmes.
In the proclamation, the White House cited security concerns and challenges in screening travellers as the basis for the decision. It pointed to Nigeria’s ongoing security issues, noting that groups such as Boko Haram and the Islamic State operate in parts of the country, which it said complicates vetting processes.
The US government also referenced visa compliance data, stating that Nigeria recorded an overstay rate of 5.56% for B-1/B-2 visas and 11.90% for F, M and J visas, based on figures from the US Overstay Report.
Source: Getty Images
Economists say it may disrupt remittance
Reacting to the announcement, economists said the broader impact of the restrictions goes beyond diplomatic symbolism, warning that they could disrupt remittance inflows, business travel, education and investment ties between both countries.
Diaspora remittances are a major concern. Nigeria has received about $20 billion annually in recent years, with the United States contributing a significant portion, The Sun reported.
Analysts estimate that a 15% to 20% decline in US-sourced remittances, driven by reduced migration and stricter visa approvals, could result in losses of between $3 billion and $4 billion each year.
For an economy facing tight foreign exchange conditions, unstable oil revenues and rising external obligations, such losses could place additional pressure on household consumption, foreign reserves and the naira.
Beyond remittances, Nigerians may also face rising direct costs. Industry estimates suggest applicants lose more than N20 billion annually in non-refundable US visa fees due to high rejection rates, a figure expected to increase under tighter scrutiny.
The restrictions could further affect business travel and investment. Nigerian entrepreneurs, professionals and executives often rely on short-term US trips for negotiations, training and investor engagements. Limited access may delay deals, weaken partnerships and reduce investor confidence at a time when Nigeria is seeking increased foreign investment.
Education is another area of concern. The US remains a leading destination for Nigerian students, who contribute billions of dollars to American institutions while acquiring skills that often benefit Nigeria through remittances, innovation and entrepreneurship.
Analysts warn that sustained reductions in student visas could have long-term implications for human capital development.
PR and Media Consultant, Obiasogu David, blamed the Nigerian leadership for the ban, noting that “ Nigeria has fallen and her respect in the comity of nations has waned in recent years.”
Senator Shehu Sani reacts to US visa ban
Legit.ng earlier reported that Senator Shehu Sani, who once represented Kaduna state in the red chamber, reacted to the travel restriction against Nigeria, saying the expanded policy now affects ordinary Nigerians and not only government officials.
He said the inclusion of Nigeria and similar countries confirms that the policy is no longer about a few officials or specific offences, but about a wider push to shut the door on migrants from developing nations.
In a post on X, the senator said the message from the U.S. to third-world countries, especially in Africa and the Caribbean, is that they should stay back and fix their countries.
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Source: Legit.ng
