KEY POINTS
- The Nigerian government says PENGASSAN cannot stage strikes at the Dangote Refinery as it operates under Free Trade Zone laws.
- NEPZA invoked a 10-year ban on strikes and lockouts within Free Trade Zones.
- The decision follows a recent dispute over mass layoffs that briefly halted refinery operations.
The Nigerian government has barred the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, from launching strikes against the Dangote Refinery, declaring that such actions violate Free Trade Zone (FTZ) regulations.
The directive was issued by the Nigeria Export Processing Zones Authority (NEPZA), which oversees operations within the country’s designated Free Trade Zones. In a statement from its Managing Director, Olufemi Ogunyemi, the agency said industrial actions are prohibited for a period of ten years after operations commence in any FTZ.
Ogunyemi noted that the restriction is enshrined in Section 18(5) of the NEPZA Act, which explicitly states that “there shall be no strikes or lockouts for a period of ten years following the commencement of operations within a Zone.” Instead, the law grants NEPZA authority to mediate and resolve any disputes that arise between management and workers.
“Dangote Refinery is a declared Free Trade Zone and continues to benefit from fiscal incentives including tax breaks and customs waivers that are crucial to national economic growth,” Ogunyemi said. “Within this framework, strikes or lockouts are considered unlawful, and all conflicts are to be managed through established dispute-resolution mechanisms.”
A Collision of Labour Rights and Investment Rules
The decision reignites debate over the balance between workers’ rights and the special regulations governing investment zones. Nigeria’s 1999 Constitution, under Section 40, guarantees the right of workers to join trade unions and to participate in lawful industrial action. However, NEPZA’s interpretation of the Free Trade Zone Act places temporary restrictions on that right within its designated areas.
The dispute traces back to last week when PENGASSAN declared a strike following the dismissal of several Nigerian employees at the $20 billion Dangote Refinery complex in Lagos. The walkout, which disrupted sections of the refinery’s operations, drew swift intervention from the Federal Government. After two days of negotiations, the strike was suspended when a truce was reached between PENGASSAN and Dangote Refinery management.
Government officials say the refinery, still in its early production phase, is too critical to Nigeria’s energy ambitions to be affected by prolonged industrial unrest. The facility is expected to process 650,000 barrels of crude oil per day once fully operational, positioning Nigeria as a potential net exporter of refined petroleum products for the first time in decades.
