The Federal Government of Nigeria has urged scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend their ongoing industrial action. The Minister of Steel Development, Prince Shuaibu Audu, made the appeal through the Permanent Secretary of the ministry, Ambassador Nura Abba Rimi. The strike was called in response to alleged undervaluation of scrap metals, manipulation of weighing scales, and direct purchase of scrap metals by local steel-producing companies.
The scrap dealers' association, NASWDEN, had embarked on an industrial action over what they described as practices undermining their operations and economic interests. The association's complaints include alleged undervaluation of scrap metals, manipulation of weighing scales leading to weight reductions, direct purchase of scrap metals by local and other steel-producing companies, and the importation of billets. The Federal Government said it recognised the concerns raised by the scrap dealers and was considering them in consultation with the National Steel Council.
The Ministry of Steel Development said the complaints were serious because of the role of scrap dealers in supplying raw materials to steel-producing companies and supporting activities across the domestic steel value chain. The ministry is working with the National Steel Council to develop practical measures that would address the grievances without undermining steel manufacturers or other businesses operating in the sector. The Minister has directed the Permanent Secretary to invite NASWDEN's leadership for further discussions and mediation.
The engagement is expected to examine the association's grievances and their implications for scrap dealers, steel manufacturers, and other operators. The ministry urged NASWDEN and steel producers to avoid actions that could further disrupt the sector, stressing that all parties must approach the dispute through dialogue and good-faith negotiations. The Federal Government's intervention comes as it seeks to expand domestic steel production and reduce Nigeria's dependence on imported steel products.
The government has set a target of producing 10 million metric tonnes of steel annually by 2030. A prolonged dispute between scrap dealers and steel producers could affect the supply of scrap, an important source of raw material for some steel manufacturers, while also disrupting businesses and workers operating within the scrap-metal trade. The Minister therefore urged the dealers to sheathe their swords and suspend the industrial action while negotiations continue.
Prince Shuaibu Audu also called on stakeholders to support President Bola Tinubu's efforts to reposition the steel industry under the Renewed Hope Agenda. He said the development of a strong and competitive domestic steel industry requires the collective commitment and cooperation of all stakeholders. No individual or group interest should undermine the broader national objective of building a viable steel industry capable of supporting Nigeria's industrialisation and economic transformation.
The ministry assured legitimate operators that it remained committed to creating a fair and stable operating environment for the industry while pursuing a lasting resolution to the current dispute. Achieving the 2030 steel production target would require greater local value addition, increased investment, job creation, and cooperation among scrap dealers, steel manufacturers, and other stakeholders. The ministry's efforts aim to balance the interests of various stakeholders in the steel sector.
Key points
- The Federal Government has appealed to scrap metal dealers to suspend their strike and return to negotiations.
- The government aims to produce 10 million metric tonnes of steel annually by 2030.
- The steel sector reform seeks to create a fair and stable operating environment for industry stakeholders.
