Nigeria's scrap-metal trade has been thrown into a fresh dispute as dealers under the National Association of Scrap and Waste Dealers and Employers of Nigeria (NASWDEN) have suspended supplies to iron and steel manufacturers. This move comes in protest against what they describe as unfair business practices. The association began a 15-day nationwide warning strike, following mounting disagreements with some iron-smelting companies over the purchase price and measurement of scrap metals.
The scrap dealers, represented by NASWDEN, claim that some companies routinely reduce the agreed value of scrap after the materials have been delivered, leaving dealers to absorb substantial losses. According to Comrade Amin Hassan Soja, the Deputy National President of NASWDEN, the financial impact can run into millions of naira on a single truckload, depending on the quantity and deductions imposed. He stated that in one truck, they lose about three to four million naira.
The association alleges that some companies arbitrarily reduce the value of scrap after delivery and dispute weighing procedures, placing severe financial pressure on indigenous dealers. Soja explained that repeated requests by dealers for clarification over the alleged price adjustments have not produced satisfactory explanations, prompting the association to escalate the matter through the industrial action.
Soja questioned why developments in the international market and geopolitical tensions, which have affected demand and created excess stocks in some markets, should be used to impose losses on local scrap dealers. He noted that reductions in raw-material costs are not similarly reflected in the prices of finished steel products. The association is seeking attention to these complaints and a resolution to the disputes.
The industrial action by NASWDEN may have significant implications for the iron and steel manufacturing sector in Nigeria. The sector relies heavily on scrap metal as a raw material, and a prolonged suspension of supplies could lead to production disruptions and shortages. The association's nationwide warning strike is set to last for 15 days, during which time they hope to negotiate a resolution with the iron-smelting companies.
The dispute highlights the challenges faced by indigenous scrap dealers in Nigeria, who often struggle with unfair business practices and lack of transparency in the industry. The association's efforts to address these issues and negotiate better terms with iron-smelting companies are crucial to ensuring the sustainability of the scrap metal trade in Nigeria.
The outcome of the negotiations between NASWDEN and the iron-smelting companies will be closely watched by stakeholders in the industry. A resolution to the disputes could lead to a resumption of supplies and a return to normal operations, while a prolonged impasse could have far-reaching consequences for the sector.
Key points
- Scrap dealers in Nigeria have halted supplies to iron and steel manufacturers over price disputes and unfair business practices.
- The National Association of Scrap and Waste Dealers and Employers of Nigeria (NASWDEN) has begun a 15-day nationwide warning strike.
- The dispute highlights the challenges faced by indigenous scrap dealers in Nigeria, including arbitrary price reductions and disputed weighing procedures.
