No Strikes or Lockouts Permitted in Dangote Refinery, Others – NEPZA

By our Reporter

The Management of the Nigeria Export Processing Zones Authority (NEPZA) has reiterated that its governing law enforces a 10-year prohibition on industrial strikes and lockouts within the nation’s Free Trade Zones.

Dr. Olufemi Ogunyemi, Managing Director of NEPZA, stated this in Abuja in response to frequent external union interferences that have disrupted operations at the Dangote Refinery.

Recently, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) shut down key oil and gas facilities following claims that Dangote Refinery had dismissed 800 workers who joined the union.

However, the refinery maintained that only a few employees were disengaged for alleged acts of sabotage as part of its organizational restructuring process.

Dr. Ogunyemi described the growing tension between PENGASSAN and the refinery—especially considering its status as a Free Trade Zone—as concerning. He emphasized that trade unions are required by law to channel any industrial concerns through NEPZA, which operates a “One-Stop-Shop” administrative framework to ensure efficiency.

Quoting the law, he said:

> “Section 18(5) of the Nigeria Export Processing Zones (NEPZA) Act provides that there shall be no strikes or lockouts 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, this provision establishes a 10-year ban on strikes and lockouts in Free Zones, while still allowing workers to form or join unions and participate in collective bargaining.

> “We are pleased that the conflict has now been de-escalated. Dangote Refinery, as a declared Free Trade Zone, continues to enjoy tax incentives and customs duty waivers aimed at supporting the economy under NEPZA’s regulatory oversight,” he noted.

Dr. Ogunyemi explained that the Free Trade Zone scheme, which has existed in Nigeria for over 30 years, follows globally recognized models designed to fast-track industrialization and economic growth.

He emphasized that all relevant government agencies and stakeholders must respect NEPZA’s “One-Stop-Shop” status in managing the scheme in accordance with the Act.

The NEPZA boss also clarified that disputes originating within a Free Zone must be referred to the Authority for resolution. He stressed that the restriction on strikes and lockouts applies only within the Free Zones and does not extend to the wider Nigerian economy.

Citing Section 24(1) of the Act, Ogunyemi pointed out that the law limits the application of external legal frameworks within the zones, as only provisions consistent with the NEPZA Act can apply.

> “In cases where the Trade Unions Act (TUA) or Trade Disputes Act (TDA) conflict with Section 18(5), the latter takes precedence as the more specific legislation governing Free Zones,” he explained.

He commended President Bola Ahmed Tinubu for his swift intervention in resolving the dispute, describing it as a demonstration of leadership in protecting vital national assets.

> “Labour issues often accompany industrialization. It is a mark of President Tinubu’s maturing democracy that this matter was resolved promptly without adverse effects on our economy,” he added.

MATHEW AYOOLA