NEPZA restates 10-years ban on industrial strikes, lockouts in FTZs
Omeiza Bilal with Agency Report
The Nigeria Export Processing Zones Authority (NEPZA) has restated that a 10-year ban on industrial strikes and lockouts remains in force across all Free Trade Zones (FTZs) in the country, including the Dangote Refinery.
The Managing Director of NEPZA, Dr. Olufemi Ogunyemi, made this known in Abuja amid rising concerns over recent union activities that have disrupted operations at the refinery.
In a statement signed on Thursday by NEPZA’s Head of Corporate Communications, Dr. Martins Odeh, Ogunyemi described the ongoing dispute between PENGASSAN and the refinery, designated as a Free Trade Zone as troubling.
He explained that the union should have channelled its grievances through NEPZA in line with the law, as the Authority operates a “One-Stop-Shop” administrative model designed to streamline and expedite processes.
Quoting the law, Ogunyemi said: “Section 18(5) of the Nigeria Export Processing Zones (NEPZA) 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.”
According to him, while workers in Free Zones retain the right to unionise and engage in collective bargaining, the Act expressly prohibits strikes and lockouts for a decade after operations commence.
“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,” he said.
Ogunyemi noted that Nigeria’s Free Trade Zone scheme, now over 30 years old, follows globally accepted principles designed to foster industrialisation and economic growth.
He emphasised that all trade disputes arising within the zones must be referred to NEPZA for resolution, stressing that this restriction applies strictly within Free Zones and not to the wider Nigerian economy.
Last week, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) shut down key oil and gas installations in protest, alleging that the Dangote Refinery had dismissed about 800 workers who joined the union.
However, the refinery maintained that only a few employees accused of sabotage were affected as part of an internal reorganisation effort.
The NEPZA boss further cited Section 24(1) of the Act, which limits the influence of external laws on the zones’ operations. He said laws applicable in the customs territory only apply in Free Zones where they do not contradict the NEPZA Act.
“Consequently, in cases of conflict between the Trade Unions Act (TUA) or Trade Disputes Act (TDA) and Section 18(5), the provisions of Section 18(5) take precedence as the more specific regulation governing Free Zones,” Ogunyemi added.
He commended President Bola Tinubu for his swift intervention in resolving the dispute, describing it as a demonstration of leadership in protecting national assets.
“It is a sign of President BAT’s maturing democracy that this has been resolved quickly without deleterious effects on our economy,” Ogunyemi said.
