The National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) has announced plans to embark on an industrial action from October 1, 2026, due to increasing irregularities in the iron industry. The association claims that some iron and steel companies have been reducing scrap metal prices without adequate notice, causing heavy losses to dealers. This move has been described as detrimental to the economic fortunes of scrap metal dealers.
According to Aminu Hassan Soja, the Deputy National President of NASWDEN, the industrial action will initially run until October 15, 2026, but may be extended indefinitely if the grievances of the association are not resolved. Soja stated that dealers could lose between N3m and N6m on a single truckload when companies suddenly reduced their purchase prices. This has placed considerable financial pressure on the members of the association.
The association has also alleged that some iron and steel companies deduct between one and five per cent from transactions under what they described as “extra dust”. NASWDEN considers this an additional financial burden on dealers. Furthermore, the association has expressed concerns over the increasing involvement of foreigners in the scrap metal business, including the establishment of dumpsites and collection centres across the country.
NASWDEN has called for stronger regulation of the sector to address these issues. The association also alleged that some iron companies purchased scrap from unregistered or uncertified dealers and agents, warning that such practices could encourage the circulation of vandalised public and private property. The purchase of scrap from unregistered dealers and agents must be properly regulated and verified.
The association has urged its members to remain peaceful and law-abiding during the planned industrial action, directing them to avoid confrontation, violence, destruction of property and other acts capable of disrupting public order. NASWDEN is seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies.
The industrial action by NASWDEN may have significant implications for the iron and steel industry in Nigeria. The association has called on relevant government agencies, stakeholders in the steel sector and the public to support efforts to resolve the dispute. The dispute highlights the need for better regulation and more transparent practices in the scrap metal industry.
The planned industrial action by scrap metal dealers has sparked concerns about the potential impact on the economy and the steel industry. NASWDEN has urged its members to comply with the directive from October 1. The association remains committed to finding a resolution to the dispute through dialogue and negotiation.
Key points
- Scrap metal dealers in Nigeria threaten to stop supplies to iron and steel companies over price irregularities and unfair practices.
- The industrial action may cause significant disruptions to the steel industry and the economy.
- The dispute highlights the need for better regulation and more transparent practices in the scrap metal industry.
