The Nigeria Export Processing Zones Authority (NEPZA) has issued a decisive legal clarification, reaffirming that its enabling Act imposes a compulsory 10-year prohibition on industrial strikes and lockouts within all Free Trade Zones (FTZs) nationwide, a mandate that specifically includes the multi-billion-dollar Dangote Refinery.
NEPZA’s clarification, delivered by NEPZA Managing Director, Dr Olufemi Ogunyemi, came in the aftermath of a significant industrial dispute that disrupted operations at the Dangote Refinery.
The incident saw the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) temporarily shut down critical oil and gas facilities. The union claimed the action was in response to the refinery’s decision to sack approximately 800 workers who had reportedly joined the union.
Refinery management, however, countered that the disengagement involved only a few personnel accused of sabotage during an internal reorganisation.
Ogunyemi expressed deep concern over what he termed “frequent and excessive external union infiltrations” in the zones, arguing that such actions severely undermine the stability and international competitiveness of businesses operating under the FTZ framework.
The crux of NEPZA’s stance lies in its founding legislation, which prioritises industrial harmony and investment security for operators who benefit from generous tax incentives and customs waivers.
Ogunyemi specifically cited Section 18(5) of the NEPZA Act, which provides clear legal backing for the prohibition
“Section 18(5) of the NEPZA Act states 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,” said Ogunyemi.
This provision establishes NEPZA not only as the regulator of commerce but also as the mandatory final arbiter for all labour conflicts within the zones.
The NEPZA chief was careful to clarify that the Act does not extinguish the fundamental rights of workers.
The law, he stressed, does not strip workers of their rights to form or join trade unions or engage in collective bargaining. Instead, it dictates the mechanism for dispute resolution, demanding that all concerns be channelled through the Authority rather than escalated into external confrontation or industrial action.
“We are pleased that the conflict has been de-escalated,” Ogunyemi said, pointing out that the Dangote Refinery operates as a legally declared Free Trade Zone entity, making it subject to NEPZA’s regulatory oversight.
NEPZA’s leadership addressed the potential conflict between its act and Nigeria’s broader labour legislation.
Ogunyemi referenced Section 24(1) of the NEPZA Act, which restricts the application of external laws within the zones.
It states, “Any law from the customs territory can only apply in the free zones if it is not inconsistent with the NEPZA Act”. Consequently, in cases of conflict between the Trade Unions Act or the Trade Disputes Act and Section 18(5), the provisions of Section 18(5) take precedence as the more specific regulation governing free zones.”
This legal precedent is central to the viability of the FTZ scheme, which has operated in Nigeria for over three decades and is designed to attract substantial foreign direct investment and accelerate industrialisation in line with global best practices.
NEPZA operates a “one-stop-shop” administrative model precisely to fast-track processes and resolve all related disputes internally, providing predictability and stability essential for major industrial projects.
The managing director commended President Bola Tinubu for his intervention in resolving the recent refinery dispute, describing it as a demonstration of leadership and a commitment to protecting national assets and investor confidence.
NEPZA, established in 1992, currently regulates and monitors more than 50 Free Trade Zones, providing fiscal incentives, streamlined regulations, and an enabling environment for export-oriented manufacturing, services, and technology enterprises.
