US probes Nigeria, others over forced labour trade practices

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

In a notice issued by the Office of the United States Trade Representative (USTR), the US said it had initiated a formal investigation under Section 301 of the Trade Act of 1974 to determine whether the trade policies of the affected economies are “unreasonable or discriminatory” and whether they harm American commerce.

The notice, signed by USTR General Counsel Jennifer Thornton, stated that the probe began on March 12, 2026. It will assess whether Nigeria and the other listed economies have failed to introduce or enforce bans on the importation of goods produced using forced labour.

“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,” the notice said.

Nigeria is among 60 economies under review, alongside major trading partners including China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.

According to the USTR, the investigation aims to determine whether the lack of effective restrictions on forced-labour goods in these economies creates unfair trade advantages that disadvantage American companies.

The agency noted that although many countries outlaw forced labour domestically, weak controls on imports allow businesses to source products made under exploitative conditions within 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 is driven by humanitarian, foreign policy and national security considerations.

The USTR also warned that forced labour creates an artificial cost advantage for producers, enabling them to sell goods at lower prices and distort competition in international markets.

Global data cited in the notice indicates that forced labour remains widespread. The International Labour Organization estimates that about 28 million people were trapped in forced labour worldwide as of 2021—roughly 3.5 out of every 1,000 people.

The number of victims increased by around 2.7 million between 2016 and 2021, largely due to 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.

The USTR said forced labour affects global supply chains, particularly in sectors such as agriculture, textiles, minerals, fisheries and palm oil derivatives used in food production and biofuels.

The agency warned that goods produced under forced labour conditions can still enter global markets even after being blocked from the US, creating unfair competition for American exporters.

As part of the investigation, the USTR will engage with governments of the affected economies and collect evidence from businesses, labour unions and other stakeholders.

Public hearings on the investigation are scheduled to begin on April 28, 2026, at the United States International Trade Commission in Washington, DC, and may continue until May 1. Interested parties have until April 15, 2026, to submit written comments through the USTR’s electronic portal.

Following the consultations, the Trade Representative will decide whether the practices of the economies under investigation violate Section 301 of the Trade Act. If confirmed, the US could impose trade measures such as additional duties or import restrictions.

Meanwhile, Nigeria’s trade data shows a sharp decline in its merchandise trade surplus. According to figures released by the National Bureau of Statistics, the country recorded a surplus of N1.71tn in the fourth quarter of 2025, down from N3.42tn in the same period of 2024.

The NBS stated in its Foreign Trade in Goods Statistics report for Q4 2025 that although Nigeria maintained a positive trade balance, the decline was largely driven by falling 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 year-on-year decline.

Exports dropped to N18.96tn, representing a 5.25 per cent fall from the N20.01tn recorded a year earlier and a 16.88 per cent decline compared with the previous quarter. Crude oil remained the dominant export, accounting for N9.70tn or 51.17 per cent of total exports.

Imports, however, continued to rise. Total imports increased to N17.25tn in Q4 2025, up 3.98 per cent from N16.59tn in the same period of 2024.

The largest import category was machinery and transport equipment valued at N5.13tn, followed by mineral fuels at N4.52tn and chemicals and related products worth N2.70tn.

Regionally, Nigeria imported most goods from Asia valued at N8.08tn, representing 46.83 per cent of total imports, followed by Europe with N5.75tn and Africa with N696.13bn.

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.