The United States government has launched a trade investigation into Nigeria and 59 other economies over allegations that they have failed to prevent the importation of goods produced with forced labour.
According to a notice issued by the Office of the United States Trade Representative (USTR), the investigation was initiated under Section 301 of the Trade Act of 1974 to 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 General Counsel at the USTR, Jennifer Thornton, stated that the probe began on March 12, 2026.
It will examine whether Nigeria and other countries have failed to introduce or effectively enforce bans on the importation of goods produced using forced labour.
Nigeria is among 60 economies listed in the probe alongside major global players including China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.
The USTR said the investigation is aimed at determining whether the absence of strict import bans on forced-labour goods in these economies creates unfair trade conditions that disadvantage American businesses.
According to the agency, although many countries prohibit forced labour domestically, weak controls on imports allow products made under exploitative conditions to circulate through global supply chains.
“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, adding that the policy reflects humanitarian, foreign policy and national security concerns.
The agency explained that forced labour allows producers to reduce production costs and sell goods at lower prices, creating unfair competition in international markets.
Data cited by the USTR shows that forced labour remains widespread worldwide. Estimates by the International Labour Organization indicate that around 28 million people were trapped in forced labour globally as of 2021.
The figure represented roughly 3.5 out of every 1,000 people, with the number increasing by about 2.7 million between 2016 and 2021, largely due to exploitation in the private sector.
The organisation also estimated that profits generated from forced labour in the global private economy reached about $63.9 billion annually in 2024.
Products linked to forced labour include agricultural commodities, textiles, minerals, fish products and palm-oil derivatives used in food and biofuel production.
The USTR warned that goods produced under forced labour conditions can still enter global markets even after being denied entry into the United States, creating unfair competition for American companies.
As part of the investigation process, the agency will consult with governments of the affected economies and gather evidence from businesses, labour groups and other stakeholders.
Public hearings on the probe will begin on April 28, 2026, at the United States International Trade Commission in Washington, D.C. and may continue until May 1.
Stakeholders who wish to participate in the hearings or submit written comments must do so through the USTR’s electronic portal by April 15, 2026.
Following the consultations and hearings, the Trade Representative will determine whether the trade practices of the economies under investigation violate US trade rules.
If confirmed, the United States could impose trade remedies such as additional tariffs or import restrictions on goods from the affected economies.
Meanwhile, recent data released by 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, Nigeria recorded a trade surplus of ₦1.71 trillion in Q4 2025, down from ₦3.42 trillion in the same period of 2024.
Total trade during the quarter stood at ₦36.21 trillion, slightly lower than the ₦36.60 trillion recorded a year earlier.
The decline was largely attributed to falling crude oil exports, which continue to dominate Nigeria’s export structure.
Crude oil accounted for ₦9.70 trillion, representing 51.17 per cent of total exports during the quarter.
While exports weakened, imports increased to ₦17.25 trillion, reflecting Nigeria’s continued dependence on foreign manufactured goods and fuel products.
The largest import category was machinery and transport equipment valued at ₦5.13 trillion, followed by mineral fuels at ₦4.52 trillion and chemicals worth ₦2.70 trillion.
Regionally, Nigeria imported most of its goods from Asia, valued at ₦8.08 trillion, followed by Europe with ₦5.75 trillion. Imports from Africa stood at ₦696.13 billion.
Among Nigeria’s trading partners, China remained the country’s largest import source, accounting for ₦5.39 trillion of total imports, followed by the United States, Netherlands, India and Brazil.
