₦airaland Forum

The Nigeria Export Processing Zones Authority (NEPZA) has reaffirmed that its law enforces a 10-year ban on industrial strikes and lockouts in the Free Trade Zones.

Dr. Olufemi Ogunyemi, Managing Director of the Authority, made the statement in Abuja, following frequent and excessive external union infiltrations that have destabilised the smooth operation of the Dangote Refinery.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) shut down critical oil and gas facilities last week over allegations that Dangote refinery had sacked 800 workers who joined the union.
However, the Dangote refinery held that it only sacked a few workers who were allegedly sabotaging the facility, claiming this was part of the company’s reorganization.

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.

He added that 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.

According to him, 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.

“The NEPZA Act requires us, 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 said.

Dr. 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.

He, therefore, expressed the Authority’s strong appreciation for the swift action taken by His Excellency, President Bola Ahmed Tinubu GCFR, to de-escalate the dispute, which was a clear demonstration of safeguarding the national asset.

Ogunyemi added that labour issues often pave the way to industrialization.

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

https://www.google.com/amp/s/thewhistler.ng/nepza-may-ban-pengassan-for-ten-years-over-shutdown-of-dangote-refinery-free-zones/amp/

If we are to go by the books, is Dangote meant to be selling his products in the Nigerian markets?. The answer is capital NO

Free zones were established for export purpose only.. note the emphasis on "only". Dangote is enjoying Free zone benefits, enjoying the Nigerian market which by law he shouldn't have access to, yet still enslaving Nigerian workers and treating them like trash.

Very lawless country.. people are fighting to protect worker's rights through unionism that's completely legal, they found a way to turn it political. Tomorrow they'll go abroad, open their wide mouths to call Nigerian youths lazy.

People are building factories with government support only to make the products more expensive for the host countries.

At this point we just need to go back to importation.

These guys are so insincere.
The nation is a mess.

flokii:
If we are to go by the books, is Dangote meant to be selling his products in the Nigerian markets?. The answer is capital NO

Free zones were established for export purpose only.. note the emphasis on "only". Dangote is enjoying Free zone benefits, enjoying the Nigerian market which by law he shouldn't have access to, yet still enslaving Nigerian workers and treating them like trash.

Very lawless country.. people are fighting to protect worker's rights through unionism that's completely legal, they found a way to turn it political. Tomorrow they'll go abroad, open their wide mouths to call Nigerian youths lazy.

How sure are you there are no exceptions to that General rule

flokii:
If we are to go by the books, is Dangote meant to be selling his products in the Nigerian markets?. The answer is capital NO

Free zones were established for export purpose only.. note the emphasis on "only". Dangote is enjoying Free zone benefits, enjoying the Nigerian market which by law he shouldn't have access to, yet still enslaving Nigerian workers and treating them like trash.

Very lawless country.. people are fighting to protect worker's rights through unionism that's completely legal, they found a way to turn it political. Tomorrow they'll go abroad, open their wide mouths to call Nigerian youths lazy.

good response from there here. They must be banned totally

flokii:
If we are to go by the books, is Dangote meant to be selling his products in the Nigerian markets?. The answer is capital NO

Free zones were established for export purpose only.. note the emphasis on "only". Dangote is enjoying Free zone benefits, enjoying the Nigerian market which by law he shouldn't have access to, yet still enslaving Nigerian workers and treating them like trash.

Very lawless country.. people are fighting to protect worker's rights through unionism that's completely legal, they found a way to turn it political. Tomorrow they'll go abroad, open their wide mouths to call Nigerian youths lazy.

You're right, but I believe I read somewhere that there's a threshold companies must not exceed if they intend to access the domestic market. That said, the reality is that many companies there routinely violate this rule—so it's not just about Dangote.

In Dangote’s case, the issue stands out because he’s dealing in essential products that the country heavily relies on. I suspect this could backfire in the future. Once local refineries become fully operational, they’ll likely push the government to enforce the law that limits how much he can bring in from the Free Trade Zone (FTZ).

For now, though, it’s a technical illegality that benefits everyone—the masses, the elites, and the government. 😄

P.S. I know some sections of the tax laws touch on this, but I’m fairly certain enforcement will be delayed.

SadiqBabaSani:
How sure are you there are no exceptions to that General rule

Government policies, laws and gazetted executive orders take no exemptions.. no sacred cows atal. what is obtainable for Mr. A is the same for Mr. B and Mr. C.
My own pain is that people like Dangote are cheating the system.. what he is supposed to pay in tax to Government has been greatly reduced to practically nothing because of Free Zone, yet he keeps enjoying Nigerian market benefits and even dragging market with those operating normally, paying huge taxes to Government. That kind of person should not be the one treating Nigerian workers in the way and manner he is doing. He must really think Nigeria is his family's animal farm where he is above the law.