The Ministry of Steel Development in Nigeria has urged the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) to suspend its ongoing industrial action. The appeal was made by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, through the Permanent Secretary of the ministry, Ambassador Nura Abba Rimi. The ministry stated that the call was necessary to maintain industrial harmony and promote mutual understanding among stakeholders.
NASWDEN had presented several concerns to the ministry, including the alleged undervaluation of scrap metals and weight reductions due to the manipulation of weighing scales. The association also raised concerns about local and other steel-producing companies engaging in direct scrap-metal trading and importing billets. These practices, NASWDEN believes, restrict the effective participation of local scrap dealers in the steel value chain.
The ministry acknowledged the seriousness of the issues raised and is considering them in consultation with the National Steel Council. The goal is to develop practical and sustainable measures to address the concerns. As part of efforts to resolve the dispute, Audu directed the Permanent Secretary to invite NASWDEN's apex leadership for further discussions and mediation.
The meeting will provide an opportunity for the parties to examine the grievances raised by NASWDEN and their implications for steel-producing companies and other operators in the sector. The ministry urged steel-producing companies and other stakeholders to cooperate with the process and fulfill their respective obligations. Audu emphasized the need for dialogue, good faith, and responsible engagement.
Audu called on stakeholders to support the Federal Government's efforts to reposition the steel industry under President Bola Ahmed Tinubu's Renewed Hope Agenda. The government aims to create an enabling environment for investment, increased domestic production, and sustainable growth across the steel value chain. Building a competitive domestic steel industry requires the collective commitment of all stakeholders.
The minister stressed that sectional interests should not undermine the broader national objective of using the sector to drive industrialization and economic transformation. Achieving the Federal Government's target of producing 10 million metric tonnes of steel annually by 2030 requires stakeholders' cooperation. This target will contribute to increased local value addition, job creation, and reduced dependence on imported steel products.
Audu urged NASWDEN to suspend the industrial action and resume negotiations, assuring the association and other stakeholders that the ministry is ready to facilitate constructive engagement towards resolving the issues. The ministry reaffirmed its commitment to providing a fair, stable, and conducive operating environment for legitimate stakeholders in the steel sector.
Key points
- The Ministry of Steel Development urges scrap dealers to suspend industrial action and return to negotiations to resolve grievances affecting operators in the steel sector.
- The industrial action by NASWDEN is in response to concerns including undervaluation of scrap metals and manipulation of weighing scales.
- The Federal Government aims to produce 10 million metric tonnes of steel annually by 2030 to drive industrialization and economic transformation.
