The Nigeria Export Processing Zones Authority (NEPZA) has issued a stern warning to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), cautioning the union against industrial actions that directly contravene established Free Trade Zone (FTZ) regulations.
The Authority firmly reiterated that strikes and lockouts are expressly prohibited within these special economic zones for a period of ten years from the commencement of operations.
The caution comes in the wake of escalating industrial tensions and what NEPZA describes as frequent and excessive external union infiltrations that recently disrupted operations at the Dangote Refinery, Nigeria’s largest private industrial complex and a designated FTZ.
Speaking in Abuja, Dr Olufemi Ogunyemi, the Managing Director of NEPZA, expressed deep concern over the dispute.
In an official statement signed by Dr Martins Odeh, Head of Corporate Communications, the agency labelled the recent shutdown of critical oil and gas facilities directed by PENGASSAN as unlawful within the context of the nation's Free Trade Zone framework.
The dispute flared up last week after PENGASSAN directed its members to down tools, alleging that the Dangote Refinery had dismissed approximately 800 workers who had joined the union.
The company, however, refuted the figure, maintaining that only a small number of workers were disengaged for acts of sabotage as part of an ongoing organisational restructuring.
Dr Ogunyemi stressed that the refinery’s status as a Free Trade Zone meant that all labour-related grievances and trade disputes should have been channelled through NEPZA for resolution, a key feature of the FTZ administrative model.
He directly cited the legislative backing for the Authority’s stance: “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,’” he said.
The Managing Director clarified that this pivotal provision imposes a statutory 10-year prohibition on industrial actions within Free Zones, while simultaneously safeguarding the workers' fundamental rights to form or join trade unions and engage in collective bargaining.
“We are pleased that the conflict has been de-escalated,” Dr Ogunyemi stated, emphasising the necessity of adhering to the laws that govern the nation’s FTZs.
“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 added.
He noted that the Nigerian Free Trade Zone scheme, which is now slightly over 30 years old, operates under global rules designed to accelerate economic development and industrialisation, underscoring the need for all stakeholders to respect the established legal framework.
Dr Ogunyemi further clarified that the restriction on external labour laws is rooted in the NEPZA Act itself.
He drew attention to Section 24(1), which limits the application of external laws within Free Zones, stating they are only operational to the extent that they do not conflict with NEPZA’s enabling 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,” he stated.
Concluding his remarks, the NEPZA chief commended President Bola Ahmed Tinubu for his swift intervention in resolving the critical dispute, describing it as a demonstration of responsive governance and a firm commitment to safeguarding a vital national asset.
Dr Ogunyemi reiterated that while industrial relations are an inevitable part of economic transformation, all parties must operate within the legal and administrative frameworks designed to protect investments and ensure sustainable growth within the Free Zones.
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