FG Bans PENGASSAN from Industrial Actions within Free Trade Zones, Declares Strike at Dangote Refinery Unlawful

The Federal Government, through the Nigeria Export Processing Zones Authority (NEPZA), has prohibited the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) from embarking on industrial actions within Free Trade Zones (FTZs), describing such actions as violations of the country’s FTZ regulations.

This directive, which effectively bars the oil workers’ union from strikes or lockouts in areas like the Dangote Refinery, was disclosed by NEPZA Managing Director, Olufemi Ogunyemi, in a statement issued in Abuja on Thursday.

According to the agency, “strikes and lockouts are prohibited within such zones for a period of ten years from commencement of operations.” It stated that the recent shutdown of critical oil and gas facilities by PENGASSAN was unlawful within the context of the Free Trade Zone framework.

Quoting the legal backing, Ogunyemi emphasized: “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.’”

He further clarified that the law “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 noted that NEPZA was pleased with the resolution of the recent conflict, adding that “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.”

Meanwhile, legal experts have pointed out that Nigeria’s 1999 Constitution does not prohibit strike actions in the country, citing Section 40, which guarantees freedom of association and the right of workers to organize.

It was gathered that PENGASSAN had declared a strike about a week ago to protest the mass sacking of Nigerian workers at Dangote Refinery. The industrial action, which lasted two days, prompted swift intervention by the Federal Government, leading to the suspension of the strike after a truce was reached between PENGASSAN and the management of Dangote Refinery.

The development underscores the growing tension between labour rights and the strict operational framework governing Free Trade Zones, particularly as the Dangote Refinery continues to play a pivotal role in Nigeria’s industrial and economic landscape.