The Nigeria Export Processing Zones Authority (NEPZA) has cautioned the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against actions that contravene Free Trade Zone (FTZ) regulations, stressing that strikes and lockouts are prohibited within such zones for ten years from the commencement of operations.
NEPZA’s Managing Director, Dr. Olufemi Ogunyemi, issued the warning in Abuja following reports of escalating industrial tensions and “frequent external union infiltrations” that have disrupted operations at the Dangote Refinery, Nigeria’s largest private industrial complex.
In a statement signed by the Head of Corporate Communications, Dr. Martins Odeh, NEPZA described the recent shutdown of critical oil and gas facilities by PENGASSAN as unlawful under the Free Trade Zone framework.
The union had last week directed its members to down tools over allegations that the Dangote Refinery dismissed about 800 workers who joined the union.
The company, however, denied the claim, stating that only a few employees were disengaged for “acts of sabotage” as part of its ongoing restructuring.
Dr. Ogunyemi expressed concern over the escalation of the dispute, noting that the refinery’s FTZ status requires that all labour grievances be addressed through the Authority.
Citing Section 18(5) of the NEPZA Act, he said: “There shall be no strikes or lockouts 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 explained that while workers in Free Zones retain the right to unionize and engage in collective bargaining, industrial actions such as strikes remain restricted during the 10-year protection period.
“We are pleased that the conflict has been de-escalated. The Dangote Refinery is a declared FTZ benefiting from tax incentives and customs duty waivers to support the economy, and NEPZA regulates its operations,” he said.
Dr. Ogunyemi further clarified that the prohibition on strikes applies only within Free Zones and not to the wider Nigerian economy. He also referenced Section 24(1) of the NEPZA Act, which limits the applicability of external laws within Free Zones, asserting that NEPZA’s provisions take precedence in cases of conflict with the Trade Unions Act or the Trade Disputes Act.
Commending President Bola Ahmed Tinubu for his prompt intervention in resolving the dispute, Dr. Ogunyemi described it as a testament to responsive governance and a commitment to protecting critical national assets.
“It is a sign of President Tinubu’s maturing democracy that this issue was resolved swiftly without adverse effects on the economy,” he noted.
The NEPZA boss reaffirmed that while industrial relations are part of economic transformation, all stakeholders must operate within the legal frameworks designed to safeguard investments and sustain industrial growth within Nigeria’s Free Trade Zones.
