NEPZA reaffirms 10-year ban on strikes in Free Trade Zones
The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that its law enforces a 10-year prohibition on strikes and lockouts within all Free Trade Zones in the country.
Olufemi Ogunyemi, managing director of NEPZA, made this known in a statement signed by Martins Odeh, head, corporate communications, in Abuja following recent union activities at the Dangote Refinery, warning that external union interference in Free Zone operations contravenes Section 18(5) of the NEPZA Act.
The NEPZA boss stated that the recent escalation of the trade dispute between the zone and the PENGASSAN, particularly given the refinery’s status as a Free Trade Zone, was worrisome.
According to him, the trade union should have directed its concerns through NEPZA, as required by law, as the Authority operated a One-Stop-Shop administrative model to fast-track processes.
“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 said.
He added that the above provision imposes a 10-year prohibition on strikes and lockouts within Free Zones while still allowing workers to join or form trade unions and engage in collective bargaining.
“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.”
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He explained that the NEPZA Act requires, along with all instruments of the corporate government system within the industry, government agencies, and relevant sectoral and specialised bodies, to honour the Authority’s “one stop shop” status in overseeing the scheme.
Ogunyemi further reiterated that trade disputes originating within a zone must be referred to the Zone Authority for resolution, adding, however, that this restriction applied exclusively within the Free Zones and did not extend to the broader Nigerian economy.
The NEPZA Chief Executive also pointed out that Section 24(1) restricted excessive interaction between external laws and the operation of the scheme, as laws applicable within the customs territory can only be operational within Free Zones to the extent that they are not inconsistent with the NEPZA 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.
“It is a sign of President BAT’s maturing democracy that this has been resolved quickly without deleterious effects on our economy,” he said.
