Scrap metal dealers in Nigeria, under the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN), have threatened to embark on an industrial action. They cited increasing irregularities in the iron industry that are detrimental to their economic fortunes. The association's Deputy National President, Aminu Hassan Soja, stated that the industrial action would commence on October 1 and initially run until October 15, 2026.
The scrap metal dealers alleged that some iron and steel companies have repeatedly reduced scrap metal prices without adequate notice. This has exposed dealers who had already bought and transported materials at higher prices to heavy losses. According to Soja, dealers could lose between N3 million and N6 million on a single truckload when companies suddenly reduced their purchase prices.
NASWDEN also alleged that some companies deduct between one and five per cent from transactions under what they described as "extra dust". The association considers this an additional financial burden on dealers. Furthermore, they claimed that foreigners are increasingly involved in the scrap metal business, including establishing dumpsites and collection centres across the country.
The development is making it increasingly difficult for indigenous scrap dealers to operate. NASWDEN is calling for stronger regulation of the sector. The association further alleged that some iron companies purchase scrap from unregistered or uncertified dealers and agents. This practice could encourage the circulation of vandalised public and private property.
NASWDEN urged its members to remain peaceful and law-abiding during the planned industrial action. The association directed them to avoid confrontation, violence, destruction of property, and other acts capable of disrupting public order. They are seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies.
The association called on relevant government agencies, stakeholders in the steel sector, and the public to support efforts to resolve the dispute. NASWDEN urged its members to comply with the directive from October 1. The industrial action may be extended indefinitely if the grievances are not resolved.
The dispute highlights the challenges faced by scrap metal dealers in Nigeria. NASWDEN's National President, Abdulfatah Ogunwale, and other members are seeking a resolution to the issues affecting their businesses. The outcome of the industrial action will likely have significant implications for the iron and steel industry in Nigeria.
Key points
- Scrap metal dealers in Nigeria will stop supplying raw materials to iron and steel companies nationwide from October 1 if their grievances are not resolved.
- The dealers are seeking stronger regulation of the sector and a fair resolution to the issues affecting their businesses.
- The industrial action may be extended indefinitely if the grievances are not resolved.
