10yr ban on strike action in Free Trade Zones subsist – NEPZA
The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed the 10-year prohibition on industrial strikes and lockouts within all Free Trade Zones (FTZs), including the strategic Dangote Refinery, to safeguard investment stability and industrial harmony.
NEPZA’s Managing Director, Dr. Olufemi Ogunyemi, made this announcement in Abuja following recent operational disruptions at the Dangote Refinery caused by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The union had shut down key refinery operations last week, alleging the sack of approximately 800 members. The refinery management, however, countered that only a few employees were disengaged for alleged sabotage during an internal restructuring.
Expressing concern over frequent and excessive external union infiltrations, Ogunyemi warned that such activities threaten the stability and competitiveness of businesses operating under the FTZ framework.
He cited Section 18(5) of the NEPZA Act, which specifically stipulates that there shall be no strikes or lockouts for a period of ten years following the commencement of operations within a Zone. This section also empowers the Authority to resolve any trade disputes that arise internally.
Dr. Ogunyemi clarified that the law does not deny workers the right to join unions or engage in collective bargaining; rather, it channels dispute resolution through NEPZA to ensure investor confidence.
He noted that the conflict at the Dangote Refinery, a declared FTZ benefiting from tax incentives and customs waivers, has since been de-escalated.
The NEPZA chief explained that the Authority operates a one-stop-shop administrative model designed to streamline processes and resolve disputes internally, aligning with global best practices.
He urged trade unions to route their grievances through the Authority instead of resorting to external confrontation, stressing that Section 24(1) of the NEPZA Act limits the application of external laws within the zones.
Ogunyemi emphasized the legal precedence, stating, “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 specific regulation governing Free Zones.”
He commended President Bola Tinubu’s timely intervention in the refinery dispute as a demonstration of leadership and commitment to protecting national assets. Ultimately, the Authority seeks to ensure that while labour disputes are inevitable, resolving them lawfully and swiftly remains key to maintaining investor confidence and driving industrial growth.
Established in 1992, NEPZA currently regulates and monitors more than 50 Free Trade Zones nationwide, providing fiscal incentives and an enabling environment for various industries