Lagos: The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that industrial strikes and lockouts are prohibited for a period of ten years within all Free Trade Zones (FTZs), including the multi-billion-dollar Dangote Refinery, under the country’s investment law framework. The clarification comes amid tensions between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which last week shut down critical oil and gas facilities over claims that the refinery had dismissed 800 unionized workers.
According to Voice of Nigeria, the refinery denied the allegation, stating that only a small number of employees involved in acts of sabotage were laid off. Managing Director of NEPZA, Dr. Olufemi Ogunyemi, described the dispute as worrisome, emphasizing that the refinery operates within a Free Trade Zone governed by specific legal provisions designed to ensure industrial stability and investor confidence.
Dr. Ogunyemi highlighted that Section 18(5) of the NEPZA Act stipulates that there shall be no strikes or lockouts for a period of ten years following the commencement of operations within a Zone, and that the Authority shall resolve any trade dispute arising within it. He explained that while employees within Free Zones retain the right to unionize and engage in collective bargaining, all labor-related concerns must be routed through NEPZA’s One-Stop-Shop administrative framework, rather than external unions.
He noted that the restriction on industrial action applies exclusively to Free Zones and not to the broader Nigerian economy. ‘Free Zones are special economic environments regulated under global best practices to attract investment, boost industrialization, and protect productivity,’ he said.
Dr. Ogunyemi added that the Free Trade Zone scheme, now over three decades old, remains a vital tool for driving economic diversification and global competitiveness. Citing Section 24(1) of the NEPZA Act, he explained that national labor laws only apply within the Free Zones as long as they do not conflict with NEPZA regulations.
In any conflict between the Trade Unions Act or Trade Disputes Act and Section 18(5), the NEPZA Act takes precedence as the more specific regulation,’ he clarified. Dr. Ogunyemi commended President Bola Ahmed Tinubu for his ‘swift and decisive intervention’ in de-escalating the standoff, calling it a demonstration of responsible governance and economic foresight.
‘It is a sign of President Tinubu’s maturing democracy that this matter was resolved quickly and without adverse effects on the economy,’ he remarked.