Nigeria Export Processing Zones Authority (NEPZA) has reiterated that industrial strikes and lockouts are prohibited for a decade within Free Trade Zones (FTZs), a regulation that also applies to the Dangote Refinery.
This clarification came from NEPZA’s Managing Director, Dr. Olufemi Ogunyemi, in a statement issued Thursday in Abuja.
He emphasized that the 10-year strike-free window is legally grounded in the NEPZA Act and is designed to safeguard industrial peace and maintain investor confidence.
Ogunyemi’s statement follows last week’s disruption at the Dangote Refinery, where the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) reportedly shut down parts of the facility. The union claimed over 800 workers were dismissed after joining the association.
The refinery’s management, however, refuted the claim, stating that only a limited number of staff were relieved of their duties due to internal restructuring and alleged acts of sabotage.
Expressing concern over the growing trend of external union interference in FTZ operations, Ogunyemi warned that such actions could jeopardize the competitiveness and attractiveness of these zones.
According to him, NEPZA is fully empowered by law to manage labour-related issues within the zones.
> “Section 18(5) of the NEPZA Act states 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.
Ogunyemi clarified that while workers are free to join unions and engage in collective bargaining, disputes must be addressed through NEPZA’s internal mechanisms.
> “We are pleased that the conflict has been de-escalated. Dangote Refinery is a declared Free Trade Zone benefiting from tax incentives and customs waivers designed to strengthen the economy, and NEPZA regulates it,” he noted.
He described NEPZA’s administrative model as a “one-stop shop” that streamlines operations and provides a platform for swift dispute resolution, a system aligned with global standards for special economic zones.
Ogunyemi urged labour unions to channel grievances through the appropriate channels within the Authority, rather than resorting to confrontation or applying laws meant for Nigeria’s customs territory.
> “The NEPZA Act requires all stakeholders including government agencies, investors, and corporate entities to respect the Authority’s one-stop-shop status in overseeing the scheme,” he said.
He referenced Section 24(1) of the Act, which limits the applicability of external laws within FTZs, stating:
> “Any law from the customs territory can only apply in the Free Zones if it is not inconsistent with the NEPZA Act. Consequently, in cases of conflict between the Trade Unions Act or the Trade Disputes Act and Section 18(5), the provisions of Section 18(5) take precedence as the more specific regulation governing Free Zones.”
Ogunyemi also commended President Bola Tinubu for intervening swiftly to resolve the situation at the Dangote Refinery, describing it as a clear signal of strong leadership and commitment to preserving strategic national assets.
While he acknowledged that labour tensions are inevitable in industrial environments, Ogunyemi stressed that resolving such matters lawfully and efficiently is essential for sustaining investor trust and accelerating Nigeria’s economic growth.
