The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that the law governing operations in Free Trade Zones (FTZs) prohibits industrial strikes and lockouts for a period of 10 years after commencement of operations.
Managing Director of NEPZA, Dr. Olufemi Ogunyemi, made this known in Abuja while reacting to recent disruptions at the Dangote Refinery allegedly caused by external union interference.
The clarification follows last week’s shutdown of key oil and gas facilities by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which accused Dangote Refinery of sacking about 800 workers who joined the union.
In response, the refinery maintained that only a few employees were dismissed for acts of sabotage, describing the move as part of an internal restructuring process.
Dr. Ogunyemi described the situation as worrisome, noting that as a Free Trade Zone entity, Dangote Refinery operates under specific regulatory conditions that restrict industrial actions.
He stressed that labour unions are required by law to channel any grievances through NEPZA, which operates a one-stop-shop administrative model designed to streamline and resolve such issues promptly.
Citing Section 18(5) of the NEPZA Act, Ogunyemi explained 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 noted that while workers in Free Trade Zones retain the right to form or join unions and engage in collective bargaining, the law specifically bars strikes and lockouts during the initial ten-year period.
“We are pleased that the conflict has been de-escalated. Dangote Refinery is a designated Free Trade Zone that enjoys tax incentives and customs duty waivers in support of Nigeria’s economy, and NEPZA remains its regulatory authority,” he said.
The NEPZA boss further stated that Nigeria’s Free Trade Zone scheme, which has existed for over 30 years, follows global best practices aimed at accelerating industrialisation and economic growth.
He emphasized that trade disputes originating within a Free Zone must be referred to the Zone Authority for resolution, adding that this restriction applies exclusively to FTZs and not to the general economy.
Dr. Ogunyemi also referred to Section 24(1) of the NEPZA Act, which limits the application of external laws within the zones, stressing that any conflicting laws—such as the Trade Unions Act or Trade Disputes Act—must give way to the provisions of the NEPZA Act.
“In cases of conflict between the Trade Unions Act or Trade Disputes Act and Section 18(5) of the NEPZA Act, the latter takes precedence as the more specific regulation governing Free Zones,” he explained.
He commended President Bola Ahmed Tinubu for his swift intervention in resolving the recent dispute, describing it as a demonstration of his commitment to protecting national assets and ensuring industrial harmony.
“Labour issues often pave the way to industrialisation. It is a sign of President Tinubu’s maturing democracy that this matter was resolved swiftly and without harm to the economy,” Ogunyemi said.
