US Investigates Nigeria and Others Over Labour Rights Violations

The United States government has begun a trade investigation into Nigeria and 59 other economies over allegations that they have not done enough to prevent 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 the probe was initiated under Section 301 of the Trade Act of 1974 to assess whether the trade practices of the listed economies are “unreasonable or discriminatory” and whether they negatively affect American commerce.

The notice, signed by the General Counsel at the USTR, Jennifer Thornton, stated that the investigation commenced on March 12, 2026. It will examine whether Nigeria and the other economies have failed to establish or effectively enforce bans on the importation of goods made with forced labour.

According to the notice, the investigation will focus on policies and practices related to the failure to impose and enforce restrictions on goods produced through forced labour.

Nigeria is among 60 economies included in the review, alongside China, India, Brazil, South Africa, the United Kingdom, Canada, and the European Union.

The USTR explained that the investigation aims to determine whether the absence of effective import restrictions on forced-labour goods in these economies creates unfair trade conditions that place American businesses at a disadvantage.

The agency noted that although many countries prohibit forced labour within their borders, weak controls on imports can allow companies to continue sourcing products made under exploitative conditions through global supply chains.

US law has prohibited the importation of goods produced wholly or partly with forced labour for nearly a century, a policy rooted in humanitarian, foreign policy, and national security concerns.

According to the USTR, forced labour gives producers an unfair cost advantage, enabling them to sell goods at lower prices and distort competition in global markets.

Estimates from the International Labour Organisation show that forced labour remains widespread globally. The ILO reported that about 28 million people were trapped in forced labour as of 2021, representing roughly 3.5 out of every 1,000 people worldwide.

The organisation also noted 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. Profits generated from forced labour in the global private economy were estimated at about $63.9bn annually in 2024.

The USTR added that forced labour affects entire global supply chains. Products linked to the practice include agricultural goods, textiles, minerals, fish products, and palm oil derivatives used in food and biofuel production.

The US government warned that such goods can re-enter global markets even after being denied entry into the United States, creating unfair competition for American firms.

As part of the process, the USTR will engage with governments of the economies under review and gather input from stakeholders. Businesses, labour organisations, and other interested groups have been invited to submit written comments on whether the countries involved have implemented or are developing laws to prohibit the importation of goods produced with forced labour.

The agency is also seeking information on whether the absence of such policies has resulted in reduced US exports, lower 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 who wish to participate in the hearings or submit written comments must do so through the USTR’s electronic portal by April 15, 2026. After the hearings and consultations, the Trade Representative will decide whether the practices of the economies under investigation violate Section 301 of the Trade Act.

If the investigation finds evidence of unfair trade practices, the United States may impose trade measures such as additional duties or import restrictions on goods from the affected economies.

Meanwhile, recent data from the National Bureau of Statistics showed that Nigeria’s merchandise trade surplus declined sharply to N1.71tn in the fourth quarter of 2025, compared with N3.42tn recorded in the same period of 2024, as falling crude oil exports and rising imports narrowed the country’s positive trade balance.

Although Nigeria maintained a trade surplus during the quarter, the balance weakened significantly on a year-on-year basis, largely due to a decline in crude oil exports.

Total trade in the quarter stood at N36.21tn, slightly lower than the N36.60tn recorded in the corresponding period of 2024, representing a 1.07 per cent decline year-on-year. Exports remained higher than imports but dropped significantly compared with the previous year.

Total exports fell to N18.96tn in the fourth quarter of 2025, a 5.25 per cent decline from N20.01tn recorded in the same period of 2024 and a 16.88 per cent drop compared with the previous quarter.

Exports accounted for 52.36 per cent of total trade during the quarter. Crude oil continued to dominate Nigeria’s export earnings, contributing N9.70tn or 51.17 per cent of total exports, although revenue from crude oil declined sharply.

Imports, however, continued to increase. Total imports rose to N17.25tn in the fourth quarter of 2025, representing a 3.98 per cent increase from N16.59tn recorded in the same period of 2024. Imports accounted for 47.64 per cent of total trade.

Further analysis showed that Nigeria remained heavily dependent on imported manufactured goods and fuel products. Machinery and transport equipment were the largest import category, valued at N5.13tn and 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, most imports came from Asia, valued at N8.08tn and representing 46.83 per cent of total imports. Europe followed with N5.75tn or 33.31 per cent, while imports from Africa stood at N696.13bn, accounting for 4.04 per cent.

China remained Nigeria’s largest import partner with N5.39tn, representing 31.22 per cent of total imports, followed by the United States, the Netherlands, India, and Brazil.