The United States government has opened a trade investigation into Nigeria and 59 other countries over alleged failures to prevent the importation of goods made with forced labour. The probe, announced by the Office of the United States Trade Representative (USTR) on Sunday, is being conducted under Section 301 of the Trade Act of 1974 to determine whether the trade practices of the affected countries are “unreasonable or discriminatory” and if they disadvantage American businesses.
The investigation, initiated on March 12, 2026, will examine whether Nigeria and other nations have failed to enforce bans on imports produced under forced labour conditions. The USTR cited concerns that goods made with forced labour give foreign producers an artificial cost advantage, allowing them to sell at lower prices and distort international competition.
Nigeria joins 59 other economies under review, including China, India, Brazil, South Africa, the United Kingdom, Canada, and members of the European Union. The USTR highlighted that forced labour continues to affect millions globally, with the International Labour Organisation estimating 28 million people were trapped in forced labour as of 2021, generating around $63.9 billion in profits annually in the private sector.
The probe will focus on products linked to forced labour, including agricultural commodities, textiles, minerals, fish products, and palm oil derivatives. USTR officials warned that such goods can re-enter global markets, creating unfair competition for US exporters.
As part of the process, the USTR will consult with governments under review and seek input from businesses, labour groups, and other stakeholders. Public hearings will be held from April 28 to May 1, 2026, in Washington, DC. Written submissions must be made through the USTR portal by April 15, 2026. Depending on the findings, the US could impose trade remedies such as additional duties or import restrictions.
The investigation comes as Nigeria’s merchandise trade surplus weakened sharply in Q4 2025, falling to N1.71tn from N3.42tn the previous year, largely due to a decline in crude oil exports. Total trade during the quarter stood at N36.21tn, slightly down from N36.60tn in Q4 2024. Exports dropped by 5.25 per cent to N18.96tn, with crude oil accounting for 51.17 per cent of exports, while imports rose by 3.98 per cent to N17.25tn, mainly comprising machinery, transport equipment, and mineral fuels.
Regionally, Nigeria imported mostly from Asia (N8.08tn), followed by Europe (N5.75tn) and Africa (N696.13bn), with China remaining the top import partner, accounting for N5.39tn or 31.22 per cent of total imports.
The US investigation underscores growing international scrutiny of supply chains linked to forced labour and highlights potential trade risks for Nigeria if effective measures are not implemented to prevent such imports.
