By Palma Ileye
Federal Government has moved to regulate Nigeria’s scrap metal industry to curb the theft and vandalism of critical infrastructure, promote responsible recycling and strengthen the country’s steel manufacturing sector.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, in a press release signed by Tine-Iulun Maureen, Head Press and Public Relations, Ministry of Steel Development disclosed this at a stakeholders’ engagement on the validation of the 2026 Draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations held in Lagos from November 9 to 10.
Audu, who was represented by the Director, Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the proposed regulations would establish an organised, transparent and sustainable scrap metal value chain to support Nigeria’s industrialisation agenda.
Speaking on the theme, “Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact,” the minister described scrap metal as a critical raw material for steel production, foundry operations and other metal manufacturing activities.
He said effective regulation would help reduce material waste, promote recycling, create employment and stimulate economic activities across the collection, transportation, processing and recycling value chain.
However, he warned that poorly regulated scrap metal activities had encouraged the theft and vandalism of public and private infrastructure, unsafe dismantling practices, environmental degradation and economic losses.
According to him, the proposed regulations would provide a framework for licensing and supervising operators, regulating collection and aggregation facilities, ensuring transaction traceability and strengthening environmental and occupational safety standards.
“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,” he said.
Audu emphasised the need to accommodate small-scale operators, noting that thousands of Nigerians depend on scrap metal collection and trading for their livelihoods.
He explained that the regulations would provide a pathway for their formalisation, with requirements proportionate to the scale and risks of their operations, while ensuring that large-scale aggregation, processing and recycling facilities comply with appropriate licensing and operational standards.
The minister expressed concern over the persistent theft of metallic components of public infrastructure, including electrical cables, railway components and manhole covers, warning that such activities disrupt public services, compromise safety and increase government maintenance costs.
He called for stronger supplier identification, verification of material sources, reliable transaction records and collaboration with security and law enforcement agencies to prevent the acquisition and trading of stolen metallic materials.
The minister urged stakeholders, including industry operators, government institutions, environmental and security agencies and professional bodies, to make constructive contributions towards strengthening the draft regulations.
He assured participants that submissions from the engagement would receive due consideration, reaffirming the Ministry’s commitment to effective implementation, institutional capacity development, public awareness, reliable data collection and consistent enforcement.
Also speaking, the Permanent Secretary of the Ministry, Amb. Nura Abba Rimi, represented by the Director, Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said the Federal Government remained committed to building a resilient and self-sustaining steel industry under President Bola Tinubu’s Renewed Hope Agenda.
He described a well-regulated scrap metal industry as fundamental to Nigeria’s industrialisation, economic diversification and national development, given its importance in providing raw materials for steel production, promoting resource efficiency and creating employment.
Rimi said the proposed regulations would help sanitise the scrap metal value chain, curb the illegal trade in stolen metallic materials, protect critical infrastructure and ensure that the economic benefits of metal recycling accrued to the country.
“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 said.
In his goodwill message, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Comrade Pastor Engr. Ogbu Luke Uchechukwu, described the engagement as a landmark development in the steel sector.
He said the validation exercise represented an important step towards establishing a well-organised, regulated and economically viable scrap and waste industry in Nigeria.
Similarly, the Director-General of the National Environmental Standards and Regulations Enforcement Agency (NESREA), Dr. Innocent Bariate Bariko, represented by the Deputy Director, Base Metal Sector, Engr. Walter Okoye, described the initiative as timely.
He noted that scrap metal was not only a valuable economic resource and major raw material for the steel industry but also a source of livelihood for thousands of Nigerians and an important component of the circular economy.
However, he warned that inadequate regulation of the sector could pose serious threats to the environment and public health.
Also, the Business Manager and representative of Kam Steel Integrated Company Limited, Busari Olanrewaju, described scrap metal as the backbone of Nigeria’s steel industry.
He expressed the company’s readiness to collaborate with the Ministry through the training of scrap collectors, adoption of standardised grading procedures, investment in modern sorting and shredding technologies and promotion of local utilisation of Nigerian scrap metal.
Olanrewaju expressed optimism that the proposed regulations would transform the scrap metal industry, revitalise the steel sector and ensure that locally generated scrap materials were channelled effectively into domestic steel production.
