The United States (US) government has launched a trade investigation into Nigeria and 59 other economies over their alleged failure to prevent the importation of goods produced with forced labour.
The probe was announced in a notice issued by the Office of the United States Trade Representative, which said it had initiated a formal investigation under Section 301 of the Trade Act of 1974.
According to the agency, the investigation will determine whether the trade practices of the affected economies are “unreasonable or discriminatory” and whether they place a burden on American commerce.
The notice, signed by the USTR General Counsel Jennifer Thornton, stated that the investigation began on March 12, 2026.
It explained that the review will assess whether Nigeria and other economies have failed to enact or enforce bans on the importation of goods produced through forced labour.
“The Trade Representative is initiating investigations with respect to acts, policies, and practices of the economies listed in Annex A of this notice related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice stated.
Nigeria is among 60 economies listed in the probe alongside China, India, Brazil, South Africa, the United Kingdom, Canada, and the European Union.
According to the USTR, forced labour allows companies to produce goods at artificially low costs, giving them an unfair advantage in global markets.
The agency said such practices distort competition and undermine businesses operating under fair labour standards.
“For almost 100 years, US law has prohibited the importation of goods mined, produced, or manufactured in whole or in part with forced labour,” the notice said.
The policy, the USTR added, reflects humanitarian, foreign policy and national security concerns.
Global estimates cited in the notice show that forced labour remains widespread.
According to the International Labour Organization, about 28 million people were trapped in forced labour worldwide as of 2021, representing roughly 3.5 out of every 1,000 people globally.
The USTR said the number of people subjected to forced labour increased by 2.7 million between 2016 and 2021, largely due to exploitation in the private sector.
The ILO also estimated that profits generated from forced labour in the global private economy reached $63.9bn annually in 2024.
The US government said forced labour contaminates global supply chains and affects a wide range of products.
Commodities commonly linked to forced labour include agricultural products, textiles, minerals, fish products and palm oil derivatives used in food and biofuel production.
According to the USTR, goods produced under such conditions can still find their way into global markets even after being denied entry into the United States.
“In markets without forced labour import prohibitions, US exports are required to compete with products produced wholly or in part with forced labour,” the notice added.
As part of the investigation, the USTR will consult with the governments of the affected economies and collect evidence from businesses, labour organisations and other stakeholders.
Public hearings on the matter are scheduled to begin on April 28, 2026, at the US International Trade Commission in Washington, and may continue until May 1.
Stakeholders wishing to participate must submit written comments through the USTR’s electronic portal by April 15, 2026.
If the investigation confirms unfair trade practices, the United States may impose additional duties or import restrictions on goods from the affected economies.
Meanwhile, recent data from the National Bureau of Statistics shows that Nigeria’s merchandise trade surplus declined sharply in the fourth quarter of 2025.
According to the NBS report titled Foreign Trade in Goods Statistics, the country recorded a trade surplus of ₦1.71tn, down from ₦3.42tn in the corresponding period of 2024.
The agency attributed the decline largely to falling crude oil exports.
Total trade during the quarter stood at ₦36.21tn, slightly below the ₦36.60tn recorded a year earlier.
Exports dropped to ₦18.96tn, representing a 5.25 per cent decline year-on-year and a 16.88 per cent fall compared with the previous quarter.
Crude oil remained Nigeria’s dominant export, contributing ₦9.70tn, representing 51.17 per cent of total exports.
While exports weakened, imports increased during the period.
The NBS said total imports rose to ₦17.25tn, representing a 3.98 per cent increase from ₦16.59tn recorded in the same period of 2024.
Nigeria’s largest import category was machinery and transport equipment valued at ₦5.13tn, accounting for 29.75 per cent of total imports.
This was followed by mineral fuels valued at ₦4.52tn and chemicals and related products worth ₦2.70tn.
China remained Nigeria’s largest import partner, accounting for ₦5.39tn, or 31.22 per cent of total imports, followed by the United States, the Netherlands, India and Brazil.
