The Federal Government is taking steps to tighten regulations in Nigeria’s scrap metal industry to curb the illegal trade in stolen metals and the vandalism of critical infrastructure, including electricity cables, railway components and manhole covers.
The government said it was developing a regulatory framework that would require operators to obtain appropriate licences, verify the sources of scrap materials and maintain transaction records to prevent stolen metals from entering the recycling market.
The Minister of Steel Development, Shuaibu Audu, disclosed this in a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, on Tuesday. Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, spoke at a stakeholders’ engagement on the validation of the proposed Scrap Metal, Collection, Trading, Recycling and Regulations, 2026, in Lagos.
He said the proposed regulations would establish an organised and transparent scrap metal value chain while improving the supply of locally sourced raw materials to steel manufacturers.
According to the minister, poorly regulated scrap metal activities have encouraged the theft and vandalism of public and private infrastructure, resulting in economic losses, disruption of essential services and increased maintenance costs.
He, however, assured that the government would address the challenges without undermining the livelihoods of thousands of Nigerians who depend on scrap metal collection and trading.
“Our objective is not to suppress legitimate commercial activity. Rather, it is to establish a system in which lawful businesses can operate with greater clarity and confidence, while activities involving stolen materials, unsafe practices or environmental harm are addressed through appropriate regulatory and legal measures,” Audu stated.
He described scrap metal as an important raw material for steel production, foundry operations and other manufacturing activities, noting that an organised recycling industry could reduce material wastage, create jobs and support Nigeria’s industrialisation drive.
The minister said the proposed framework would introduce licensing and supervision of operators, regulate collection and aggregation centres, ensure transaction traceability and improve monitoring and enforcement.
He identified the theft of electrical cables, railway components, manhole covers and other metallic installations as a major threat to national infrastructure, explaining that such activities disrupt public services, endanger lives and increase infrastructure maintenance costs.
Audu called for stronger identification and verification of scrap suppliers, proper documentation of transactions and improved collaboration among regulators, security agencies and law enforcement authorities.
Addressing concerns among informal operators, he said the regulations would allow small-scale collectors and traders to formalise their businesses through requirements that reflect the size and risks of their operations.
He added that the government would avoid unnecessary restrictions on small businesses while ensuring that large-scale aggregation, processing and recycling facilities operated under appropriate licensing and safety standards.
The minister urged stakeholders to examine the draft regulations and make recommendations on implementation, operational requirements and compliance costs.
He assured participants that their submissions would be considered before the regulations were finalised.
Also speaking, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, described proper regulation of the industry as essential to developing a competitive domestic steel sector.
Rimi said the regulations would help curb the illegal trade in stolen metals, protect public and private infrastructure and ensure that the benefits of recycling contributed to national development.
“Our objective is not to stifle legitimate businesses or discourage investment, but to establish a transparent, accountable and sustainable operating environment in which genuine entrepreneurs can thrive, investors can have confidence, and the steel industry can access reliable raw materials to support increased domestic production and value addition,” he stated.
The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as a landmark development for the steel industry.
He said the engagement went beyond reviewing a policy document, describing it as an important step towards establishing an organised, regulated and economically viable scrap and waste industry.
The proposed regulations form part of the Federal Government’s efforts to strengthen local manufacturing, develop Nigeria’s steel industry and promote the recovery of valuable materials through recycling.
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