Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have threatened to suspend the supply of scrap materials to iron and steel companies across the country over what they described as unfair practices in the industry.
The association said the planned industrial action would begin on October 1, 2026, and continue until October 15, with the possibility of an indefinite extension if the issues are not resolved.
The directive was contained in a statement issued in Kano by the association’s Deputy National President, Aminu Hassan Soja, on behalf of its National President, Abdulfatah Ogunwale.
NASWDEN alleged that some iron and steel companies frequently reduce scrap metal prices without giving dealers sufficient notice. According to the association, such sudden price changes leave dealers who have already purchased and transported scrap at higher prices with significant losses.
Soja said dealers could lose between ₦3 million and ₦6 million on a single truckload when companies unexpectedly lower their buying prices.
The association also complained about alleged deductions of between one and five per cent from transactions under what it described as “extra dust,” saying the practice places an additional financial burden on dealers.
NASWDEN further raised concerns about the growing participation of foreign nationals in the scrap business, including the establishment of dumpsites and collection centres across Nigeria.
The association said the development was making it harder for indigenous operators to remain in business and called for stronger regulation of the sector.
It also alleged that some steel companies purchase scrap materials from unregistered or uncertified dealers and agents. NASWDEN warned that inadequate verification could facilitate the entry of vandalised public and private property into the steel industry.
The association called for proper regulation and verification of scrap dealers to ensure that materials supplied to steel companies are obtained through legitimate channels.
Ogunwale urged members to remain peaceful and law-abiding during the planned action, warning them against violence, confrontation, destruction of property or any conduct that could disrupt public order.
NASWDEN said it preferred resolving the dispute through dialogue and negotiation with iron and steel companies.
The association also appealed to relevant government agencies, industry stakeholders and the public to support efforts aimed at resolving the grievances, while directing members to comply with the October 1 commencement date.
