The United States government has opened a trade investigation into Nigeria and 59 other economies over alleged failure to prevent the importation of goods produced with forced labour.
In a notice issued by the Office of the United States Trade Representative and obtained on Sunday, the US said the probe was initiated under Section 301 of the Trade Act of 1974 to assess whether the trade practices of the affected countries are unfair or discriminatory and whether they place American commerce at a disadvantage.
The notice, signed by the General Counsel of the Office of the United States Trade Representative, Jennifer Thornton, stated that the investigation commenced on March 12, 2026.
According to the document, the probe will examine whether Nigeria and other listed economies have neglected to establish or effectively enforce restrictions 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 relating to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice stated.
Nigeria was listed among 60 economies under review, alongside countries such as China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.
The US Trade Representative explained that the investigation seeks to determine whether the absence of strict import controls on forced-labour goods in these economies creates unfair trading conditions that harm American businesses.
The agency noted that although several countries outlaw forced labour within their borders, weak restrictions on imports could allow companies to source products manufactured under exploitative conditions through global supply chains.
“For nearly a century, US law has prohibited the importation of goods mined, produced or manufactured wholly or partly with forced labour,” the notice said, adding that the policy reflects humanitarian, foreign policy and national security considerations.
It also stated that the use of forced labour often lowers production costs for manufacturers, enabling them to sell goods at cheaper prices and distort competition in international markets.
Global data cited by the USTR indicated that forced labour remains prevalent worldwide. According to estimates by the International Labour Organisation, about 28 million people were trapped in forced labour as of 2021, representing roughly 3.5 out of every 1,000 people globally.
The agency added that the number of victims rose by approximately 2.7 million between 2016 and 2021, largely driven by exploitation in the private sector. It also noted that profits generated from forced labour in the global private economy were estimated at about $63.9bn annually as of 2024.
The USTR further warned that forced labour affects entire international supply chains, with products such as agricultural commodities, textiles, minerals, fish products and palm oil derivatives among those linked to the practice.
According to the notice, goods produced under such conditions may still find their way into global markets even after being barred from the United States, thereby creating unfair competition for American exporters.
“In markets where import bans on forced labour goods do not exist, US exports are forced to compete with products produced wholly or partly with forced labour,” the document stated.
As part of the process, the USTR said it would engage with the governments of the affected economies and collect input from relevant stakeholders.
Businesses, labour organisations and other interested parties have been invited to submit written comments on whether the economies under investigation have adopted or are developing policies to ban imports linked to forced labour.
The agency is also seeking information on whether the absence of such measures has resulted in reduced US exports, declining economic output or wage pressure on American workers.
Public hearings on the investigation are scheduled to begin on April 28, 2026, at the US International Trade Commission in Washington, DC, and may continue until May 1.
Interested stakeholders are expected to submit written comments or requests to participate in the hearings through the USTR electronic portal by April 15, 2026.
Following the consultations and hearings, the Trade Representative will determine whether the practices of the economies under review violate provisions of Section 301 of the Trade Act.
If the investigation establishes unfair trade practices, the US government could impose countermeasures, including additional tariffs or import restrictions on goods originating from the affected economies.
Meanwhile, recent data indicate that Nigeria’s merchandise trade surplus declined significantly in the fourth quarter of 2025.
Figures released by the National Bureau of Statistics showed that the country recorded a trade surplus of N1.71tn during the period, down from N3.42tn in the corresponding quarter of 2024, largely due to reduced crude oil exports and rising imports.
According to the NBS Foreign Trade in Goods Statistics report for Q4 2025, total trade stood at N36.21tn, slightly lower than the N36.60tn recorded in Q4 2024, representing a 1.07 per cent year-on-year decline.
Exports during the quarter were valued at N18.96tn, a drop of 5.25 per cent from N20.01tn recorded in the same period of 2024 and a 16.88 per cent decline compared with the preceding quarter.
Exports accounted for 52.36 per cent of total trade, with crude oil remaining the dominant export commodity. The NBS reported that crude oil generated N9.70tn, representing 51.17 per cent of total exports, although earnings from the commodity declined significantly.
On the import side, total imports rose to N17.25tn in Q4 2025, representing a 3.98 per cent increase compared with N16.59tn recorded in Q4 2024.
The statistics showed that machinery and transport equipment constituted the largest share of imports at N5.13tn, accounting for 29.75 per cent. Mineral fuels followed with N4.52tn or 26.19 per cent, while chemicals and related products were valued at N2.70tn, representing 15.68 per cent.
Regionally, the report indicated that most of Nigeria’s imports came from Asia, valued at N8.08tn or 46.83 per cent of total imports. Europe followed with N5.75tn or 33.31 per cent, while imports from Africa stood at N696.13bn, accounting for 4.04 per cent.
China remained Nigeria’s largest import partner, accounting for N5.39tn or 31.22 per cent of total imports, followed by the United States, the Netherlands, India and Brazil.