The United States government has launched a sweeping trade investigation into Nigeria and 59 other countries over allegations that they have failed to prevent the importation of goods produced with forced labour, a move that underscores Washington’s ongoing efforts to uphold ethical standards in global commerce while protecting American businesses from unfair competition.
According to a notice released by the Office of the United States Trade Representative (USTR) and obtained by The PUNCH on Sunday, the formal probe was initiated under Section 301 of the Trade Act of 1974 to examine whether the trade practices of the affected economies are “unreasonable or discriminatory” and whether they create a burden on American commerce.
The notice, signed by Jennifer Thornton, General Counsel at the USTR, stated that the investigation, which commenced on March 12, 2026, will focus on whether Nigeria and other listed economies have failed to introduce or effectively enforce bans on the importation of goods made with forced labour, a practice that Washington argues distorts markets and gives foreign producers an artificial cost advantage over US firms.
The USTR notice explained that 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.”
Nigeria is included among 60 economies under review, alongside major trading nations such as China, India, Brazil, South Africa, the United Kingdom, Canada, and members of the European Union.
According to the USTR, the probe is intended to determine whether the absence of effective import bans on forced-labour goods creates unfair trade conditions that disadvantage American businesses.
While many countries prohibit forced labour domestically, the notice emphasised, weak or absent controls on imported goods allow companies to continue sourcing products manufactured under exploitative conditions from global supply chains, undermining fair competition in international markets.
“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 stated, adding that the policy reflects humanitarian, foreign policy, and national security concerns. The USTR further explained that forced labour provides producers with an artificial cost advantage, allowing them to sell goods at lower prices and distort competition globally. Citing global estimates from the International Labour Organisation (ILO), the agency noted that about 28 million people were trapped in forced labour worldwide as of 2021, representing roughly 3.5 individuals per 1,000 people, and that this number increased by about 2.7 million between 2016 and 2021, largely driven by exploitation in the private sector. The ILO also estimated that profits generated from forced labour in the global private economy reached $63.9 billion annually in 2024, illustrating the scale and financial impact of the practice.
According to the USTR, forced labour contaminates entire supply chains, affecting products including agricultural commodities, textiles, minerals, fish products, and palm oil derivatives used in food and biofuel production. The notice warned that goods produced under such conditions can re-enter global markets even after being denied entry into the United States, creating unfair competition for American companies.
“In markets without forced labour import prohibitions, US exports are required to compete with products produced wholly or in part with forced labour,” the statement said.
As part of the investigation, the USTR will consult with the governments of the economies under review and gather evidence from stakeholders, while inviting written submissions from businesses, labour groups, and other interested parties on whether the affected economies have implemented or are developing laws to prohibit the importation of forced-labour goods.
The agency will also seek information on whether the absence of such policies has led to lost US exports, reduced 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.
Stakeholders wishing to participate in the hearings or submit written comments must do so through the USTR’s electronic portal by April 15, 2026. Following the hearings and consultations, the Trade Representative will determine whether the trade practices of the economies under investigation are actionable under Section 301 of the Trade Act. If the findings confirm unfair trade practices, the United States could impose trade remedies, including additional duties or import restrictions on goods from the affected economies.
The investigation comes at a time when Nigeria’s trade balance has shown signs of weakening, underscoring the country’s exposure to global market pressures. An earlier report, says that Nigeria’s merchandise trade surplus declined sharply to N1.71 trillion in the fourth quarter of 2025, down from N3.42 trillion in the corresponding period of 2024, as falling crude oil exports and rising imports narrowed the country’s positive trade balance.
Data from the National Bureau of Statistics (NBS) indicated that while Nigeria maintained a trade surplus during the quarter, the balance moderated significantly on a year-on-year basis.
The NBS noted in its Foreign Trade in Goods Statistics for Q4 2025 that “Nigeria’s merchandise trade balance for Q4 2025 remained positive at N1.71tn,” adding that the moderation in the balance was “majorly attributable to a decline in crude oil exports.” Total trade during the quarter stood at N36.21 trillion, slightly lower than the N36.60 trillion recorded in Q4 2024, reflecting a 1.07 per cent decline year-on-year.
Analysis of Nigeria’s export performance showed a sharp decline in total exports, which fell to N18.96 trillion in Q4 2025, representing a 5.25 per cent drop from N20.01 trillion recorded in Q4 2024 and a 16.88 per cent decline compared with the previous quarter.
Exports accounted for 52.36 per cent of total trade during the quarter, down from a higher share in the corresponding period of 2024, with crude oil continuing to dominate Nigeria’s export structure, contributing N9.70 trillion or 51.17 per cent of total exports despite sharp earnings declines. Meanwhile, imports continued to rise, reaching N17.25 trillion, a 3.98 per cent increase from N16.59 trillion in Q4 2024, accounting for 47.64 per cent of total trade.
The largest import categories were machinery and transport equipment valued at N5.13 trillion (29.75 per cent), mineral fuels worth N4.52 trillion (26.19 per cent), and chemicals and related products at N2.70 trillion (15.68 per cent). Regionally, Nigeria sourced imports mainly from Asia at N8.08 trillion (46.83 per cent), followed by Europe with N5.75 trillion (33.31 per cent), and Africa at N696.13 billion (4.04 per cent). China remained Nigeria’s largest import partner at N5.39 trillion (31.22 per cent), followed by the United States, the Netherlands, India, and Brazil, highlighting the country’s continued dependence on foreign manufactured goods and fuel products amid shifting global trade dynamics.