FG Bars PENGASSAN from Industrial Action Against Dangote Refinery, Citing Free Trade Zone Rules

The Nigerian government has barred the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) from embarking on any strike action against Dangote Refinery, citing regulations under the Free Trade Zone (FTZ) framework.

In a statement released in Abuja on Thursday, the Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), Olufemi Ogunyemi, said strikes and lockouts are prohibited within Free Trade Zones for a period of ten years from the commencement of operations.

Ogunyemi explained that the restriction is in line with Section 18(5) of the NEPZA Act, which states that no strike or lockout shall occur within a zone during the 10-year period, and that all trade disputes arising within such zones must be handled by the authority.

“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,” Ogunyemi said.

The clarification comes after PENGASSAN declared an industrial strike last week over the alleged mass sacking of Nigerian workers at the Dangote Refinery. The action, which led to the temporary shutdown of oil and gas operations, was later suspended following the Federal Government’s intervention and a truce between both parties.

However, legal experts have pointed out that while the NEPZA Act restricts strikes within free zones, Nigeria’s 1999 Constitution, under Section 40, upholds the right to freedom of association and collective action, creating a potential area of legal contention.

As the Dangote Refinery — one of Africa’s largest industrial projects — continues operations under the FTZ framework, the government’s stance sets a critical precedent for labor relations within such zones.