FG Urges Scrap Dealers to Suspend Strike, Promises Steel Sector Reform

The Federal Government has appealed to scrap metal dealers to suspend their ongoing industrial action and return to negotiations, promising to address concerns affecting their operations and the wider steel industry. 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, following a nationwide strike by members of the National Association of Scrap and Waste Dealers Employers of Nigeria. NASWDEN began its industrial action on October 1 over what it described as unfair practices by some iron and steel companies. The association's grievances include alleged arbitrary reductions in scrap metal prices, discrepancies in weighing procedures, direct purchases of scrap by steel-producing companies and the importation of billets. In a statement issued on Thursday by the ministry's Head of Press and Public Relations, Tine-Iulun M.A., the minister acknowledged the concerns raised by the association and called for dialogue to prevent further disruption of the steel value chain. FG moves to resolve scrap dealers' grievances The ministry said the complaints had been formally presented through the National Steel Council and were being examined in consultation with relevant stakeholders. According to the Federal Government, the concerns require practical and sustainable measures that would protect the interests of scrap dealers without undermining steel manufacturers and other businesses operating within the sector. Audu consequently directed the Permanent Secretary, in collaboration with the Office of the Executive Secretary of the National Steel Council, to invite NASWDEN's leadership for further discussions and mediation. The government said the proposed engagement would examine the association's grievances as well as their implications for scrap dealers, steel manufacturers and other operators across the industry. The intervention follows the commencement of NASWDEN's 15-day warning strike on October 1. The association had earlier threatened to extend the action indefinitely if its concerns were not satisfactorily addressed. Dealers accuse steel companies of unfair practices NASWDEN has accused some steel companies of reducing the agreed prices of scrap metals after dealers had already purchased and transported the materials. The association said such reductions could leave dealers with substantial losses, particularly where prices were changed after the scrap had been delivered. Its Deputy National President, Aminu Hassan Soja, previously alleged that dealers could lose several million naira on a single truckload because of price reductions. The association has also complained about discrepancies between the quantity of scrap supplied and the weight eventually recorded at some steel companies. Soja alleged that dealers could deliver about 1,000 kilogrammes of scrap but receive payment based on significantly lower weights after the materials were measured at company facilities. These claims are allegations by NASWDEN and have not been independently established as a general industry practice. The association has also raised concerns over the involvement of foreign operators in the scrap-metal business and alleged that some steel companies purchase materials from unregistered dealers. NASWDEN argued that stronger regulation was necessary to protect legitimate local operators and prevent stolen or vandalised materials from entering the steel supply chain. Government targets stronger domestic steel production The Federal Government's intervention comes as it seeks to increase domestic steel production and reduce Nigeria's dependence on imported steel products and industrial inputs. The Ministry of Steel Development said the scrap-metal sector plays an important role in supplying raw materials to steel-producing companies and supporting economic activity throughout the value chain. The government is targeting annual steel production of 10 million metric tonnes by 2030, according to the ministry. Audu said achieving that target would require cooperation among scrap dealers, steel manufacturers and other stakeholders, as well as greater local value addition, investment and job creation. The minister urged all parties to avoid actions that could further disrupt the sector and instead pursue negotiations in good faith. He also called on stakeholders to support the Federal Government's efforts to reposition the steel industry under President Bola Tinubu's Renewed Hope Agenda. Strike threatens steel supply chain The scrap dealers' action has the potential to affect steel manufacturers because scrap metal is an important raw material for parts of the domestic steel industry. NASWDEN had directed its members to stop supplying scrap metals to iron-smelting and steel-producing companies during the warning strike. The association said the action was necessary to draw attention to the problems confronting its members and pressure affected companies to address the grievances. However, the Federal Government warned that prolonged disruption could affect other businesses and workers operating across the steel value chain. The ministry therefore urged NASWDEN to suspend the strike while negotiations take place. The government assured legitimate operators in the scrap-metal industry that it remained committed to creating a fair and stable business environment. For now, the outcome of the proposed discussions between the government and NASWDEN will determine whether the warning strike is suspended and whether the wider dispute can be resolved without further disruption to Nigeria's steel industry. The Federal Government said its objective was to develop a lasting framework that would address the dealers' concerns while ensuring that steel manufacturers and other legitimate operators could continue to function effectively.