The National Association of Scrap and Waste Dealers Employers of Nigeria has announced plans to halt supplies to iron and steel companies nationwide from October 1, 2026. The industrial action, initially set to last until October 15, may be extended indefinitely if the association's grievances are not addressed. The decision was made in response to alleged irregularities in the industry, including repeated price cuts without adequate notice.
According to the association's Deputy National President, Aminu Hassan Soja, some iron and steel companies have been reducing scrap metal prices without prior notice, causing significant financial losses for dealers. These losses can range from N3m to N6m per truckload when companies suddenly lower their purchase prices. This has placed considerable financial pressure on the dealers, who often buy and transport materials at higher prices.
The association also alleged that some companies are deducting between one and five per cent from transactions under the guise of "extra dust," which they consider an additional financial burden on dealers. Furthermore, NASWDEN expressed concerns about the increasing involvement of foreigners in the scrap metal business, including the establishment of dumpsites and collection centres across the country.
The growing presence of foreigners in the industry is making it increasingly difficult for indigenous scrap dealers to operate. NASWDEN is calling for stronger regulation of the sector to level the playing field. The association also warned that some iron companies are purchasing scrap from unregistered or uncertified dealers and agents, which 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, avoiding confrontation, violence, and destruction of property. The association's National President, Abdulfatah Ogunwale, directed members to seek a fair and mutually acceptable resolution of their grievances through dialogue and negotiation with the iron and steel companies.
The association has 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 to halt supplies from October 1. The industrial action may have significant implications for the iron and steel industry in Nigeria, which relies heavily on scrap metal.
The dispute highlights the need for stronger regulation and better communication between scrap metal dealers and iron and steel companies. A resolution to the dispute could help prevent significant losses for both parties and ensure a stable supply of scrap metal to the industry.
Key points
- Scrap metal dealers in Nigeria threaten to halt supplies to iron and steel companies from October 1 over alleged industry irregularities.
- The industrial action may be extended indefinitely if the association's grievances are not addressed.
- The dispute highlights the need for stronger regulation and better communication between scrap metal dealers and iron and steel companies.
