The National Association of Scrap and Waste Dealers Employers of Nigeria has announced plans to suspend supplies to iron and steel companies nationwide from October 1. The industrial action, initially set to last two weeks, may continue indefinitely if the association's grievances are not addressed. The decision was made to protest alleged irregularities in the industry, including sudden price cuts and deductions from transactions.
One of the major concerns of the association is the sudden reduction of scrap metal prices by some iron and steel companies without adequate notice. Dealers who had already purchased and transported scrap based on previously agreed prices could lose between ₦3 million and ₦6 million on a single truckload when prices are unexpectedly reduced. This has caused significant financial losses for the dealers.
The association also raised concerns over the increasing involvement of foreign operators in the scrap-metal business. Some foreign operators have allegedly established dumpsites and collection centres across the country. Furthermore, some iron and steel companies are accused of buying scrap from unregistered or uncertified dealers and agents, which could facilitate the circulation of vandalised public and private property into the scrap-metal market.
The National Association of Scrap and Waste Dealers Employers of Nigeria is demanding stronger regulation and verification of scrap dealers, agents, and collection centres. The association wants to ensure that scrap materials entering the steel industry are obtained through legitimate sources. This, they believe, will help prevent the circulation of stolen or vandalised property.
The planned strike will involve suspending the supply of scrap metals and other raw materials to iron-smelting companies producing iron rods and other steel products. The association has urged its members to remain peaceful and law-abiding during the industrial action, warning against violence, confrontation, destruction of property, or any conduct capable of disrupting public order.
Despite the planned industrial action, the National Association of Scrap and Waste Dealers Employers of Nigeria remains open to dialogue with stakeholders. The association has appealed to relevant government agencies and players in the iron and steel sector to help resolve the dispute. A satisfactory Memorandum of Understanding must be reached with the affected iron and steel companies to prevent the strike from continuing beyond October 15.
The strike, which begins on October 1, may have significant implications for the iron and steel industry in Nigeria. The National Association of Scrap and Waste Dealers Employers of Nigeria has been vocal about its concerns, and it remains to be seen how the government and iron and steel companies will respond to the association's demands.
Key points
- The scrap metal dealers' strike may cause a shortage of iron rods and other steel products in Nigeria.
- The association demands stronger regulation and verification of scrap dealers, agents, and collection centres.
- The strike may continue indefinitely if the association's grievances are not resolved.
