NEPZA decries PENGASSAN’s strike against Dangote Refinery, says action prohibited in FTZs

*Dr. Olufemi Ogunyemi, Managing Director of the Nigeria Export Processing Zones Authority, cautions the Petroleum and Natural Gas Senior Staff Association of Nigeria against actions that contravene Free Trade Zone regulations in the economy

Alexander Davis | ConsumerConnect

The Nigeria Export Processing Zones Authority (NEPZA) has cautioned the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against actions that contravene Free Trade Zone (FTZ) regulations.

NEPZA reaffirmed that strikes and lockouts are expressly prohibited within such zones for a period of 10 years after commencing operations.

Dr. Olufemi Ogunyemi, Managing Director of NEPZA, stated this in Abuja following reports of escalating industrial tensions and “frequent and excessive external union infiltrations” that have disrupted operations at the Dangote Refinery, the country’s largest private industrial complex.

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Dr. Martins Odeh, Head of Corporate Communications at NEPZA, the agency described the recent shutdown of critical oil and gas facilities by PENGASSAN as unlawful within the context of the Free Trade Zone framework.

PENGASSAN, last week, had directed its members to down tools over allegations that the Dangote Refinery dismissed about 800 workers who had joined the union.

The company, however, denied the figure, maintaining that only a few workers were disengaged “for acts of sabotage” as part of an ongoing organisational restructuring.

Dr. Ogunyemi as well expressed concern over the escalation of the dispute, noting that the refinery’s FTZ status meant that all labour-related grievances should have been channelled through the Authority.

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The Authority also stated: “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.”

According to him, the provision imposes a 10-year prohibition on strikes and lockouts within Free Zones, while still allowing workers the right to form or join trade unions and engage in collective bargaining.

Ogunyemi said: “We are pleased that the conflict has been de-escalated.

“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.

“The Free Trade Zone scheme in Nigeria is slightly over 30 years old, and we ought to be familiar with the scheme and the global rules that guide the operation of this world economic model, which aims to accelerate economic development and industrialisation.”

He equally emphasised that trade disputes originating within any Free Zone must be referred to NEPZA for resolution, clarifying that this restriction applies solely within the zones and not to the wider Nigerian economy.

He also drew attention to Section 24(1) of the NEPZA Act, which limits the application of external laws within Free Zones, noting that such laws 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.

The NEPZA Chief commended President Bola Ahmed Tinubu for his prompt intervention in resolving the dispute, describing it as a demonstration of responsive governance and a commitment to safeguarding a critical national asset.

“It is a sign of President BAT’s maturing democracy that this has been resolved quickly without deleterious effects on our economy,” he said.

Ogunyemi reiterated that while industrial relations are part of the process of economic transformation, stakeholders must operate within the legal and administrative frameworks designed to protect investments and ensure the sustainability of industrial growth within the Free Zones.

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