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, a development that could have implications for global trade relations and supply chains.
In a notice released by the Office of the United States Trade Representative, the US government announced that it had initiated a formal investigation 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 of the agency, Jennifer Thornton, stated that the investigation began on March 12, 2026, and will examine whether Nigeria and the other listed economies have failed to introduce or effectively enforce bans on the importation of goods produced with forced labour.
According to the document, the investigation is focused on the absence or weak enforcement of policies that prohibit the importation of goods made under forced labour conditions. The agency stated that it is reviewing acts, policies, and practices of the economies listed in the investigation to determine whether their approach to regulating imports linked to forced labour violates fair trade principles.
Nigeria is among 60 economies named in the probe alongside major global economies including China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.
The US government said the probe is intended to determine whether the absence of strict import controls on forced-labour goods in these economies creates unfair trade conditions that disadvantage American businesses. According to the agency, while many countries prohibit forced labour within their own borders, the lack of strong enforcement against the importation of goods made through forced labour allows such products to remain embedded in global supply chains.
The notice explained that American law has prohibited the importation of goods produced with forced labour for nearly a century. The policy, it said, reflects humanitarian concerns as well as foreign policy and national security considerations.
Officials argue that forced labour gives producers an artificial cost advantage, enabling them to sell goods at lower prices and distort competition in international markets. As a result, companies that rely on exploitative labour practices can undercut competitors who follow fair labour standards.
Global estimates cited in the notice suggest that forced labour remains a significant challenge worldwide. Data from the International Labour Organization indicates that approximately 28 million people were trapped in forced labour globally as of 2021, representing roughly 3.5 individuals out of every 1,000 people worldwide.
The number of people subjected to forced labour has also increased in recent years. According to the estimates cited by the agency, about 2.7 million additional individuals were forced into such conditions between 2016 and 2021, largely driven by exploitation in the private sector.
The economic incentives behind the practice remain substantial. Estimates from the International Labour Organization suggest that profits generated from forced labour in the global private economy reached about $63.9bn annually in 2024.
Authorities say the practice contaminates global supply chains across multiple industries. Products that have been linked to forced labour include agricultural commodities, textiles, mineral resources, fish products and palm oil derivatives used in food production and biofuels.
The US government warned that goods produced under such conditions may still enter global markets even after being denied entry into the United States. According to the notice, this creates a situation where American exporters are forced to compete with cheaper products made under exploitative labour conditions in markets that do not maintain strict import bans.
As part of the investigation process, the Office of the United States Trade Representative will consult with the governments of the economies under review and gather evidence from businesses, labour organisations and other stakeholders.
The agency has invited written submissions from interested parties on whether the affected economies have implemented, or are in the process of developing, laws that prohibit the importation of goods made with forced labour. It is also seeking information on whether the absence of such policies has resulted in lost exports from the United States, reduced economic output, or wage pressure on American workers.
Public hearings connected to the investigation are scheduled to begin on April 28, 2026, at the United States International Trade Commission in Washington, D.C., and may continue until May 1.
Stakeholders interested in participating in the hearings or submitting written comments must file their submissions through the electronic portal of the Office of the United States Trade Representative by April 15, 2026. Following consultations and hearings, the trade representative will determine whether the practices of the economies under investigation violate the provisions of Section 301 of the Trade Act.
If the investigation concludes that unfair trade practices have occurred, the United States could impose trade remedies that may include additional tariffs, duties or import restrictions on goods originating from the affected economies.
The development comes at a time when Nigeria’s external trade performance has already shown signs of pressure. Recent data released by the National Bureau of Statistics indicates that Nigeria’s merchandise trade surplus declined significantly in the fourth quarter of 2025.
According to the data, Nigeria recorded a trade surplus of N1.71tn during the quarter, a sharp decline from the N3.42tn surplus recorded during the same period in 2024. The statistics agency attributed the drop largely to a reduction in crude oil exports.
Total trade during the quarter stood at N36.21tn, slightly lower than the N36.60tn recorded during the corresponding period of the previous year, reflecting a modest decline in overall trade activity.
Exports during the quarter were valued at N18.96tn, representing a 5.25 percent decrease from N20.01tn recorded in the fourth quarter of 2024 and a much larger decline when compared with the preceding quarter.
Despite the decline, exports still accounted for a larger share of Nigeria’s total trade, representing 52.36 percent during the quarter. Crude oil remained the dominant export commodity, contributing N9.70tn or 51.17 percent of total exports. However, earnings from crude oil exports dropped significantly during the period.
While exports declined, imports continued to increase. Total imports rose to N17.25tn in the fourth quarter of 2025, representing a 3.98 percent increase from N16.59tn recorded in the corresponding quarter of 2024.
Analysis of the import structure shows that Nigeria remains heavily dependent on foreign manufactured goods and energy products. Machinery and transport equipment formed the largest import category, valued at N5.13tn and accounting for 29.75 percent of total imports.
This was followed by mineral fuels valued at N4.52tn, representing 26.19 percent of imports, while chemicals and related products accounted for N2.70tn or 15.68 percent of the country’s total imports.
Regional trade patterns show that Nigeria imported most of its goods from Asia, which accounted for imports valued at N8.08tn or 46.83 percent of the total. Europe followed with N5.75tn representing 33.31 percent, while imports from African countries stood at N696.13bn or 4.04 percent.
Among individual countries, China remained Nigeria’s largest import partner, accounting for N5.39tn or 31.22 percent of total imports. Other major trade partners included the United States, the Netherlands, India and Brazil.
Analysts say the new trade investigation by the United States could add another layer of scrutiny to global supply chains involving Nigerian imports and exports, particularly as international regulators increase pressure on countries and corporations to eliminate forced labour practices from global commerce.
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