The United States government has launched a trade investigation into Nigeria and 59 other countries over their alleged failure to prevent the importation of goods produced with forced labour.

In a notice released by the Office of the United States Trade Representative and obtained by The PUNCH on Sunday, the US said it had begun a formal probe 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 burden American commerce.

The notice was signed by the General Counsel at the Office of the United States Trade Representative, Jennifer Thornton. The investigation, which was initiated on March 12, 2026, will examine whether Nigeria and other listed economies have failed to introduce or effectively enforce bans on the importation of goods made with forced labour.

The notice stated, “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 among 60 economies named in the investigation alongside countries such as China, India, Brazil, South Africa, the United Kingdom, Canada, and the European Union.

According to the USTR, the probe is intended to determine whether the absence of effective import bans on forced-labour goods in these economies creates unfair trade conditions that disadvantage American businesses.

The agency noted that while many countries prohibit forced labour domestically, the lack of strict controls on imports allows companies to continue sourcing products made under exploitative conditions from 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 stated, adding that the policy reflects humanitarian, foreign policy, and national security concerns.

It explained that forced labour gives producers an artificial cost advantage, allowing them to sell goods at lower prices and distort competition in international markets.

Global estimates cited by the USTR show that forced labour remains widespread. The International Labour Organisation estimates that about 28 million people were trapped in forced labour worldwide as of 2021, representing roughly 3.5 out of every 1,000 people.

The notice added that the number of people subjected to forced labour 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 about $63.9bn annually in 2024.

According to the USTR, the practice contaminates entire global supply chains. Products identified as being linked to forced labour include agricultural commodities, textiles, minerals, fish products and palm oil derivatives used in food and biofuel production.

The US government 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 firms. “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 said.

As part of the investigation process, the USTR will consult with the governments of the economies under review and gather evidence from stakeholders. The agency has also invited 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.

It is also seeking 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 will 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 hearing 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 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 PUNCH earlier reported that Nigeria’s merchandise trade surplus declined sharply to N1.71tn in the fourth quarter of 2025, down from N3.42tn recorded in the corresponding period of 2024, as falling crude oil exports and rising imports narrowed the country’s positive trade balance.

Data released by the National Bureau of Statistics showed that although Nigeria maintained a trade surplus during the quarter, the balance weakened significantly on a year-on-year basis.

The NBS said 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 N36.21tn, slightly lower than the N36.60tn recorded in Q4 2024, reflecting a 1.07 per cent decline year-on-year. Exports remained higher than imports during the quarter but declined significantly compared with the previous year.

The NBS reported that total exports fell to N18.96tn in Q4 2025, representing a 5.25 per cent drop from N20.01tn 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, compared with a higher share in the corresponding period of 2024. According to the report, crude oil continued to dominate Nigeria’s export structure, contributing N9.70tn or 51.17 per cent of total exports during the quarter. However, crude oil earnings dropped sharply.

While exports weakened, imports continued to grow. The NBS said total imports rose to N17.25tn in Q4 2025, representing a 3.98 per cent increase from N16.59tn recorded in Q4 2024. Imports accounted for 47.64 per cent of total trade during the quarter. Analysis of imports showed that Nigeria remained heavily dependent on foreign manufactured goods and fuel products.

According to the report, the largest import category was machinery and transport equipment, valued at N5.13tn, accounting for 29.75 per cent of total imports. This was followed by mineral fuels valued at N4.52tn, representing 26.19 per cent, and chemicals and related products worth N2.70tn, accounting for 15.68 per cent.

Regionally, the NBS stated that Nigeria imported goods mainly from Asia, valued at N8.08tn, representing 46.83 per cent of total imports, followed by Europe with N5.75tn or 33.31 per cent, while imports from Africa stood at N696.13bn or 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. (The PUNCH)

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