The Nigeria Export Processing Zones Authority (NEPZA) has reiterated that no industrial strike action or lockout is permitted within the nation’s Free Trade Zones (FTZs) for a period of ten years following the commencement of operations.
The reaffirmation comes amid rising labour tensions involving the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the management of the $20 billion Dangote Refinery.
This provision, according to NEPZA, applies to all licensed enterprises operating within the Free Trade Zone scheme, including the Dangote Refinery, which is located within the Lekki Free Zone in Lagos.
The agency said the 10-year strike ban forms part of the legal safeguards designed to protect investments, ensure industrial stability, and maintain investor confidence in Nigeria’s Free Zone framework.
NEPZA Cautions Against External Interference
NEPZA’s Managing Director, Olufemi Ogunyemi, issued the clarification in a statement on Thursday, warning against what he described as “external union infiltrations” that risk disrupting operations within the Free Zones.
Ogunyemi noted that the recent dispute involving the Dangote Refinery and PENGASSAN was “worrisome and avoidable,” stressing that all industrial disputes within the zones must be resolved through the administrative channels provided under NEPZA’s regulatory framework.
He explained that Section 18(5) of the Nigeria Export Processing Zones Act clearly prohibits strikes or lockouts for ten years from the date a Free Zone enterprise begins operation.
Instead, all disputes must be referred to NEPZA for mediation and resolution.
“The Free Trade Zone law provides that there shall be no strikes or lock-outs for ten years following the commencement of operations within a zone,” Ogunyemi said.
“The Authority shall resolve any trade dispute arising within such a zone. This is to maintain operational stability and protect national economic interests.”
He further stated that while employees retain the right to form and join trade unions, their grievances must be channelled through NEPZA’s One-Stop-Shop mechanism designed to fast-track administrative processes and maintain harmony between employers and workers.
Ensuring Industrial Stability Within Free Trade Zones
Ogunyemi explained that the Free Trade Zone (FTZ) scheme was established to attract foreign investment, boost exports, and foster industrial development through tax incentives, customs waivers, and simplified procedures.
To maintain investor confidence, the framework limits disruptions that could arise from labour unrest.
“Dangote Refinery, as a declared Free Trade Zone entity, enjoys special incentives that are crucial to the economy,” the NEPZA boss said.
“It is regulated under NEPZA’s laws, and as such, any industrial matter within it must comply strictly with the provisions of the NEPZA Act.”
He added that the 10-year strike ban was not designed to suppress workers’ rights but to balance the need for industrial peace with Nigeria’s long-term development goals.
“The law guarantees freedom of association and collective bargaining, but these must be conducted through NEPZA’s established administrative channels,” he added.
Balancing Labour Rights and Economic Growth
NEPZA’s reaffirmation followed reports that PENGASSAN accused the Dangote Refinery of laying off 800 workers for joining the union.
The refinery’s management denied the allegations, clarifying that only a few staff members were affected by an internal restructuring process.
Ogunyemi urged trade unions to respect the legal boundaries of the Free Zones while engaging in constructive dialogue to promote mutual understanding.
He also commended President Bola Tinubu for his swift intervention in de-escalating the dispute, describing the resolution as a “mature demonstration of leadership and respect for the rule of law.”
“Labour agitation is part of industrial development, but it must operate within the bounds of law,” he said.
“Critical national assets such as the Dangote Refinery must be shielded from disruptions that could undermine the economy.
Legal Provisions Supporting the 10-Year Strike Ban
Ogunyemi cited Section 24(1) of the NEPZA Act, which limits the influence of external laws within Free Trade Zones. According to him, any conflict between the Trade Unions Act, the Trade Disputes Act, and Section 18(5) of the NEPZA Act must be resolved in favour of the NEPZA law.
“In cases of legal conflict, the provisions of Section 18(5) take precedence because they specifically govern the operations of Free Zones,” he explained.
“This ensures clarity, legal certainty, and the protection of the investment climate that the Free Zone model was designed to create.”
He emphasised that the NEPZA framework is in line with global standards applied in other Free Zones around the world, including those in the United Arab Emirates, Singapore, and China, where similar laws prevent prolonged labour disruptions.
Free Trade Zone Model and Its Economic Importance
Established in 1992, the Free Trade Zone scheme has been pivotal in Nigeria’s drive to attract investment, expand exports, and fast-track industrialisation.
Over the past three decades, NEPZA has licensed over 50 Free Zones across Nigeria, covering sectors such as oil and gas, manufacturing, technology, and logistics.
According to Ogunyemi, the scheme operates under a One-Stop-Shop regulatory framework that coordinates all government agencies within the zones to eliminate bureaucratic bottlenecks and promote ease of doing business.
“The scheme has been instrumental in positioning Nigeria as a competitive investment destination,” he said.
“To sustain this momentum, all stakeholders must respect the legal and operational framework that underpins it.”
The NEPZA boss reiterated that cooperation between government, investors, and labour unions is essential to ensuring the continued success of the Free Zone model.
He warned that frequent interference by external unions could jeopardise the stability that investors rely upon to make long-term commitments to Nigeria’s economy.
He concluded by reaffirming the authority’s commitment to protecting both workers’ rights and national economic interests:
“We remain committed to promoting fairness, transparency, and industrial harmony within Nigeria’s Free Zones. However, such harmony must be achieved within the law.”
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