The Nigerian government has barred the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) from undertaking industrial actions that violate Free Trade Zone (FTZ) regulations. This decision follows PENGASSAN’s recent shutdown of critical oil and gas facilities, an act deemed unlawful under the FTZ framework. The dispute took place at the Dangote Refinery, which is situated within a Free Trade Zone and is overseen by the Nigeria Export Processing Zones Authority (NEPZA).
Olufemi Ogunyemi, Managing Director of NEPZA, explained that strikes and lockouts are prohibited in such zones for ten years from the start of operations. Section 18(5) of the Nigeria Export Processing Zones (NEPZA) Act states: “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.” While this provision bans strikes and lockouts for a decade, it still permits workers to form or join trade unions and engage in collective bargaining.
The conflict began when the Dangote Refinery dismissed several Nigerian workers, prompting PENGASSAN to call a strike. After two days of industrial action, the federal government intervened, and a truce was reached, leading to the suspension of the strike. NEPZA welcomed the de‑escalation, noting that the refinery continues to enjoy tax incentives and customs duty waivers that support the economy.
Although the Nigerian Constitution, under Section 40 of the 1999 Constitution, does not prohibit strikes, the specific regulations governing Free Trade Zones take precedence in this case. As the situation evolves, it remains to be seen how PENGASSAN will respond to the government’s prohibition on industrial action within the Free Trade Zone. For now, the emphasis is on maintaining stability and resolving disputes through established channels.
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