The Nigerian federal government is intensifying efforts to regulate the country's scrap metal industry. This move aims to protect critical national infrastructure and strengthen the steel and metals manufacturing sector. The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, seeks to establish a transparent and sustainable scrap metal value chain.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated that scrap metal is a critical raw material for steel making, foundry operations, and other metal manufacturing activities. He noted that it has the potential to reduce material wastage, promote circular production, create employment, and stimulate economic activities. However, these benefits can only be realised through an effective regulatory framework.
The proposed regulations aim to address issues associated with poorly regulated scrap metal activities, such as theft and vandalism of public and private infrastructure, unsafe dismantling practices, environmental degradation, and economic losses. The Minister stated that the regulations would provide a structured framework for licensing and supervising operators, regulating collection and aggregation facilities, and ensuring transaction traceability.
Prince Audu emphasised that the objective of the regulations is not to suppress legitimate commercial activity but to establish a system where lawful businesses can operate with clarity and confidence. He noted that activities involving stolen materials, unsafe practices, or environmental harm would be addressed through regulatory and legal measures. The regulations also aim to accommodate small-scale operators, providing a practical pathway towards formalisation.
The Minister highlighted the importance of protecting national assets, expressing concern over the persistent theft and vandalism of public and private infrastructure. The proposed regulations would strengthen environmental and occupational safety compliance, prevent illicit trade, and improve monitoring and enforcement across the sector. This move is expected to create a safer and more sustainable environment for scrap metal collection, trading, and recycling.
According to Prince Audu, thousands of Nigerians depend on scrap metal collection and trading for their livelihoods. The regulations would provide requirements proportionate to the scale and risks of different operations, ensuring that large-scale aggregation, processing, and recycling facilities comply with appropriate licensing and operational standards. This approach aims to balance the need for regulation with the need to support small-scale operators.
The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, is currently being validated through a stakeholders' engagement in Lagos. The Minister urged stakeholders to validate the draft regulations, which are designed to support Nigeria's industrialization agenda. The regulations are expected to promote sustainable scrap metal management, reduce material wastage, and stimulate economic activities.
Key points
- The proposed regulations aim to establish a transparent and sustainable scrap metal value chain that supports Nigeria's industrialization agenda.
