By Haruna Abdulrashid
The management of the Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that its laws impose a 10-year ban on industrial strikes and lockouts within Free Trade Zones across the country.
This was contained in a press release issued and signed by the Head of Corporate Communications, Dr Martins Odeh, on Thursday, October 9, 2025. The statement quoted the Managing Director of the Authority, Dr Olufemi Ogunyemi, as saying this in Abuja, following what he described as frequent and excessive external union infiltrations that have disrupted the smooth operations of the Dangote Refinery.
The clarification came in the wake of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN)’s shutdown of critical oil and gas facilities last week over allegations that the Dangote Refinery had sacked 800 workers who joined the union.
However, the refinery denied the allegations, insisting that it only disengaged a few workers who were allegedly sabotaging the facility, describing the move as part of its internal reorganisation process.
Dr Ogunyemi expressed concern over the escalation of the trade dispute between PENGASSAN and the refinery, emphasising that the refinery’s status as a Free Trade Zone made the situation particularly worrisome.
He explained that the trade union ought to have directed its concerns through NEPZA, as required by law, since the Authority operates a “one-stop-shop” administrative model designed to fast-track dispute resolution processes.
Quoting Section 18(5) of the Nigeria Export Processing Zones Act, the NEPZA boss said:
“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, the provision imposes a 10-year prohibition on strikes and lockouts within Free Zones while still allowing workers to form or join trade unions and engage in collective bargaining.
“We are pleased that the conflict has been de-escalated,” he added.
Dr. Ogunyemi explained that the Dangote Refinery is a designated Free Trade Zone that continues to benefit from tax incentives and customs duty waivers to support Nigeria’s economy, with NEPZA serving as its regulatory authority.
“The Free Trade Zone scheme in Nigeria is slightly over 30 years old, and we ought to be familiar with the global rules guiding this economic model, which is designed to accelerate industrialisation and national development,” he said.
He further emphasized that the NEPZA Act mandates all agencies, corporate bodies, and stakeholders operating within the industry to respect the Authority’s “one-stop-shop” status in overseeing activities within the scheme.
Dr. Ogunyemi reiterated that trade disputes originating within a zone must be referred to the Zone Authority for resolution, noting, however, that the restriction on strikes and lockouts applies only within Free Zones and not to the broader Nigerian economy.
He also noted that Section 24(1) of the Act limits the application of external laws within Free Zones, stating that laws applicable in the customs territory only operate in Free Zones to the extent that they are not inconsistent with the NEPZA Act.
“Consequently, in cases of conflict between the Trade Unions Act (TUA) or the 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 said.
Dr. Ogunyemi commended President Bola Ahmed Tinubu, GCFR, for his swift intervention in de-escalating the dispute, describing it as a demonstration of leadership and commitment to protecting a key national asset.
“Labour issues often accompany industrialization. It is a sign of President Tinubu’s maturing democracy that this matter was resolved swiftly without adverse effects on our economy,” he added.
