The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that no industrial strike action or lockout is permitted within the country’s Free Trade Zones for a period of 10 years after commencement of operations.
This existing provision, according to NEPZA, applies to the Dangote Refinery and other similar enterprises.
It said the clarification became necessary following the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over alleged sack of 800 of its members at the Dangote Refinery.
Managing Director of NEPZA, Olufemi Ogunyemi, in a statement, cautioned against “external union infiltrations” that have disrupted the smooth operations of enterprises operating under NEPZA’s jurisdiction, stressing that such interference contravenes established laws governing Free Trade Zones.
He said the trade tensions at the refinery were “worrisome and avoidable,” noting that the Free Trade Zone law clearly prohibits industrial action within such economic enclaves.
Ogunyemi decried that while workers in Free Zones retain the right to form or join unions and engage in collective bargaining, the law requires all disputes to be handled through the Authority’s administrative mechanism rather than through strikes or lockouts.
He added that the trade union should have directed its concerns through NEPZA, as required by law, as the Authority operated a One-Stop-Shop administrative model to fast-track processes.
He stated that “The recent escalation of the trade dispute between the zone and PENGASSAN, particularly given the refinery’s Free Trade Zone status, is worrisome. Section 18(5) of the Nigeria Export Processing Zones Act provides that “there shall be no strikes or lock-outs for a period of ten years following the commencement of operations within a Zone, and the Authority shall resolve any trade dispute arising within a Zone,’’ he said.
According to him, the above provision imposes a 10-year prohibition on strikes and lockouts within Free Zones while still allowing workers to join or form trade unions and engage in collective bargaining.
“We are pleased that the conflict has been de-escalated. Dangote Refinery is a declared FTZ that continues to benefit from tax incentives and customs duty waivers to support the economy, and NEPZA regulates it.
“The Free Trade Zone scheme in Nigeria is slightly over 30 years old, and we ought to be familiar with the scheme and the global rules that guide the operation of this world economic model, which aims to accelerate economic development and industrialisation.
“The NEPZA Act requires us, along with all instruments of the corporate government system within the industry, government agencies, and relevant sectoral and specialised bodies, to honour the Authority’s ‘one stop shop’ status in overseeing the scheme,’’ Ogunyemi added.
He said the unions ought to have directed its concerns through NEPZA, as the Authority operates a One-Stop-Shop model designed to fast-track resolutions and ensure industrial harmony.
The 650,000 barrels-per-day Dangote Refinery, located in the Lekki Free Trade Zone, Lagos, is one of the world’s largest single-train refineries and a key pillar of Nigeria’s industrialisation drive.
Declared a Free Trade Zone entity, the refinery enjoys special regulatory incentives, including tax holidays and customs duty waivers.
According to NEPZA, these privileges are granted under a framework that aims to attract investment and shield operations from disruptions that could undermine national economic objectives.
The NEPZA Chief Executive also pointed out that Section 24(1) restricted excessive interaction between external laws and the operation of the scheme, as laws applicable within the customs territory can only be operational within Free Zones to the extent that they are not inconsistent with the NEPZA Act.
“Consequently, in cases of conflict between the Trade Unions Act or Trade Disputes Act and Section 18(5), the provisions of Section 18(5) take precedence as the more specific regulation governing Free Zones.
“In cases of conflict between the Trade Unions Act or the Trade Disputes Act and Section 18(5) of the NEPZA Act, the provisions of the latter take precedence as the more specific regulation governing Free Zones,” he stated.
Ogunyemi commended President Bola Tinubu for his prompt intervention in defusing the refinery dispute, describing it as a “mature demonstration of leadership and respect for the rule of law.”
“We are pleased that the conflict has been de-escalated,” he said. “It is a sign of President Tinubu’s maturing democracy that this was resolved quickly without negative effects on the economy.”
He added that while labour agitation is an inherent part of industrial growth, it must be guided by the laws governing specific sectors.
“Labour issues often pave the way to industrialisation, but they must be handled within the bounds of law to protect critical national assets,” he said.
Ogunyemi emphasised that stakeholders must respect this governance structure to sustain investor confidence and economic growth.
“The Free Trade Zone scheme is over 30 years old. We ought to be familiar with its global rules, which aim to accelerate economic development and industrialisation,” he said.
