Collective Bargaining, Trade Unions And Industrial Action In Nigeria: Legal Reflections On Recent Developments

Introduction

The right to association, collective bargaining, and industrial action is central to Nigeria's labour law, founded on constitutional guarantees and statutes such as the Trade Unions Act, Trade Disputes Act, and Labour Act, under the supervision of the National Industrial Court (NIC). Recent industrial disputes in the oil, energy, and manufacturing sectors have tested the balance between workers' rights and economic stability. The 2025 PENGASSAN–Dangote Refinery dispute,¹ though swiftly resolved, exposed procedural gaps in regulating industrial action and protecting union members. This article examines these legal frameworks, using the Dangote dispute to highlight enforcement and reform challenges in Nigeria's labour relations system.

I. Legal Framework

A. Constitutional Protection: Freedom of Association

The Nigerian Constitution guarantees the right to peaceful assembly and association, expressly recognising the right to form or belong to a trade union.² This constitutional protection provides the normative foundation for statutory rights to organize and bargain collectively.³

B. Principal statutes

1. Trade Unions Act⁴ — the Act provides for the formation, registration, and organization of trade unions and contains protections for union members. The 2005 amendment emphasises voluntarism of membership and prohibits victimisation for refusal to join.⁵ The Act also regulates trade federation formation,⁶ union administration⁷ and certain limits on litigation against unions.⁸
2. Trade Disputes Act⁹ — the Act lays down a mandatory, stepped procedure for the resolution of trade disputes (conciliation, appointment of conciliators, reference to arbitration tribunal¹⁰ and, where appropriate, the National Industrial Court).¹¹ It restricts recourse to ordinary courts in trade disputes, prescribes notice requirements and contains provisions that regulate strikes and lock-outs (including special provisions for essential services and notice periods.¹²
3. Labour Act¹³ — the Labour Act governs many aspects of the employment relationship, including terms and conditions,¹⁴ termination,¹⁵ and employer obligations.¹⁶ While it does not exhaustively govern union rights, it intersects with union law where dismissal, employment conditions and statutory entitlements are in issue.
4. National Industrial Court Act¹⁷ — the NIC Act establishes the NIC as the specialist forum for labour and industrial relations matters, including disputes over the interpretation and enforcement of collective agreements, and confers the Court with exclusive jurisdiction in labour matters.¹⁸
5. Trade Disputes (Essential Services) Act¹⁹ and related instruments — the legislative schema recognises that certain services are essential and imposes stricter regulation (e.g. longer notice, procedural constraints, and in extreme cases proscription) where strikes would endanger essential infrastructure or public welfare.²⁰

II. Illustrative Disputes and Recent Developments

Nigeria's recent industrial landscape has witnessed a range of disputes reflecting the tensions inherent in balancing workers' rights with economic imperatives. For instance, conflicts in the petroleum and energy sectors have involved allegations of anti-union dismissals, solidarity strikes, and emergency judicial interventions.

A vivid example is the 2025 Dangote–PENGASSAN dispute, where the dismissal of about 800 refinery workers allegedly for union organising led to solidarity actions that disrupted crude and gas supplies.²¹ The National Industrial Court (NIC) intervened with injunctions to prevent wider economic fallout,²² while Federal Government conciliation produced a redeployment arrangement that ended the strike without loss of pay.²³ The incident highlighted the resilience of Nigeria's collective bargaining framework but also its procedural weaknesses—especially regarding the legality of solidarity strikes, enforcement of anti-victimisation protections, and institutional capacity to balance industrial rights with national economic imperatives.

III. Core Legal Issues

A. Union Membership and Protection Against Dismissal: The Trade Unions Act and Labour Act prohibit victimisation for union activity. Dismissals linked to union participation are unlawful and may attract reinstatement or compensation, or other relief before the NIC.²⁴ However, proving anti-union motive remains a procedural challenge, often complicated by employers' reliance on alternative justifications such as redundancy or misconduct.

B. Legality of Industrial Action: Under the Trade Disputes Act, strikes are lawful only after statutory procedures — conciliation, arbitration, and notification — have been exhausted.²⁵ Solidarity actions, though sometimes viewed as legitimate collective expression, occupy a grey zone and are frequently restrained by courts where they breach procedure or threaten essential services.²⁶

C. Jurisdiction and Powers of the National Industrial Court (NIC): The Trade Disputes Act and NIC Act confer exclusive jurisdiction on the NIC over labour and industrial disputes, excluding ordinary courts.²⁷ The NIC's powers include granting interlocutory relief to maintain public order or prevent economic harm²⁸—authority that proved central during the Dangote–PENGASSAN standoff.

D. Public Interest and Essential Services: The Trade Disputes (Essential Services) Act permits enhanced state intervention where industrial action endangers public welfare or national security.²⁹ Courts regularly weigh constitutional freedoms against the imperative of economic continuity.³⁰ The Dangote episode exemplifies this tension between protecting union freedoms and maintaining economic stability.

IV. Policy Analysis and Critique

1. Ambiguity on Solidarity Strikes: While the Trade Unions Act supports collective solidarity among workers, the Trade Disputes Act and essential-services rules restrict industrial actions that could disrupt vital services. This creates uncertainty about when solidarity or sympathy strikes are lawful. Clearer legislation or judicial interpretation is needed to define their scope and legality.
2. Dispute Resolution vs. Economic Stability: In critical sectors like oil and gas, strikes can harm the economy. To prevent disruption, courts often issue injunctions, and the government intervenes. Although this helps maintain stability, it may weaken unions' leverage and discourage employers from addressing workers' grievances unless negotiations result in real remedies.
3. Weak Enforcement of Anti-Victimisation Protections: Although labour laws prohibit punishing workers for union activity, enforcement is weak. Employers often disguise retaliatory dismissals as restructuring or misconduct. Stronger investigations and clearer evidentiary rules at the NIC would improve worker protection.
4. Balancing Private Autonomy and Public Interest: Employers have the right to manage their businesses, but this must align with workers' constitutional and statutory rights. In nationally important sectors, regulation should ensure that private interests do not override public welfare or fair labour practices.

V. Conclusion

Recent industrial disputes in Nigeria underscore the urgent need for greater harmony between labour laws, constitutional guarantees, and enforcement mechanisms. While the Trade Unions Act, Trade Disputes Act, and Labour Act provide a solid foundation for union recognition and protection against victimisation, persistent gaps remain regarding solidarity strikes, procedural safeguards, and institutional responsiveness. Effective conciliation and negotiation remain crucial for sustaining industrial peace, yet comprehensive reform is required to clarify legal ambiguities and balance workers' rights with national economic interests.

VI. Recommendations

1. Clarify the Law on Solidarity and Essential-Service Strikes: The Trade Disputes Act should be amended to clearly outline when and how solidarity or sympathy strikes may occur. This includes defining permissible procedures, especially in essential services. The Trade Unions Act should also introduce safeguards—like advance notice and proportionate sanctions—to ensure that collective action remains lawful without endangering economic stability.
2. Strengthen Enforcement of Anti-Victimisation Provisions: Both the Ministry of Labour and the NIC need enhanced authority and faster mechanisms to investigate and act on claims of anti-union dismissals. Prompt intervention would discourage retaliatory terminations, reduce escalation, and better uphold workers' constitutional rights to organise and participate in union activity.
3. Institutionalise Rapid, Independent Conciliation for Critical Sectors: A specialised, permanent conciliation panel should be created for high-impact sectors like energy and transport. This body would provide quick, expert intervention and could recommend temporary measures—such as reinstatement or redeployment—to maintain stability until disputes are formally resolved.

Footnotes

1 Reuters, 'Nigeria Oil Union Orders Halt of Gas Supply to Dangote Refinery Over Mass Sackings', 27 September 2025 https://www.reuters.com/business/world-at-work/nigerias-oil-union-orders-halt-gas-supply-dangote-refinery-over-mass-sackings-2025-09-27/ (Accessed 7 October 2025).

2 The 1999 Constitution of the Federal Republic of Nigeria,) (As amended), S. 40.

3 NHRC Advisory on the Right to Freedom of Association and Assembly (2024).

4 Cap T14, LFN 2004.

5 Trade Union (Amendment) Act, 2005, s. 12(4).

6 Trade Union Act, 2004, S.30.

7 Ibid, Ss. 23-33.

8 Ibid, S. 45.

9 Cap T8, LFN 2004

10 Trade Disputes Act, LFN 2004, Ss. 4-9.

11 Ibid, S. 14.

12 Ibid, Ss. 18 & 41.

13 Cap L1, LFN 2004.

14 Labour Act, 2004 Ss. 13-20.

15 Ibid, S. 11.

16 Ibid, S. 7.

17 National Industrial Court Act 2006 (Nigeria)

18 Ibid, S. 1.

19 CAP T9 LFN 2004.

20 Trade Disputes (Essential Services) Act, S. 1.

21 AP News, 'Nigerian Government to Meet Oil Workers' Union After Strike Halts Nationwide Supply' (AP News, 29 September 2025) In https://apnews.com/article/d2c92fb4b3beb7b274c2533f16824a88 (Accessed 7 October 2025).

22 ThisDay, "Court Restrains PENGASSAN, NNPC, Others from Cutting Oil, Gas Supply to Dangote Refinery" (ThisDay, 30 September 2025) https://www.thisdaylive.com/2025/09/30/court-restrains-pengassan-nnpc-others-from-cutting-oil-gas-supply-to-dangote-refinery/ (Accessed 7 October 2025).

23 Reuters, 'Nigeria Oil Union Agrees to Call Off Strike After Talks with Dangote Petroleum', 1 October 2025 https://www.reuters.com/sustainability/sustainable-finance-reporting/nigeria-oil-union-agrees-call-off-strike-after-talks-with-dangote-petroleum-2025-10-01/ (Accessed 7 October 2025).

24Aghata v United Cement Company of Nigeria Ltd [2019] 67 NLLR (Pt 239) 525 (NIC).

25 Trade Disputes Act, Cap T8 LFN 2004, Ss 4–9.

26National Union of Electricity Employees v Bureau of Public Enterprises [2010] 7 NLLR (Pt 20) 67 (NIC).

27 National Industrial Court Act 2006 (Nigeria), S. 1.

28 PENGASSAN v Schlumberger Anadrill Nigeria Ltd [2008] 11 NLLR (Pt 29) 164 (NIC).

29 Trade Disputes (Essential Services) Act, Cap T9 LFN 2004, s 1.

30Attorney-General of the Federation v Nigeria Labour Congress [2008] 11 NLLR (Pt 29) 330 (CA).

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