By Fatima Saka
The Federal Government has moved to tighten regulation of Nigeria’s scrap metal industry, with plans to introduce licensing, transaction tracking and stricter monitoring to curb the theft and vandalism of critical national infrastructure.
The proposed measures are contained in the Draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, which the Ministry of Steel Development is seeking to validate through a two-day stakeholders’ engagement in Lagos from November 9 to 10.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, represented by the Director of Metallurgical Raw Material Development and Investment Promotion, Ime Eprikpo, said the regulations would address illegal activities in the scrap metal value chain while ensuring a reliable supply of raw materials for Nigeria’s steel industry.
Speaking at the engagement themed, “Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact,” Audu identified the theft of electrical cables, railway components, manhole covers and other metallic infrastructure as a major concern requiring stronger regulatory and enforcement measures.
He said the activities not only result in the loss of valuable materials but also disrupt public services, threaten safety, increase maintenance costs and undermine national infrastructure development.
According to him, the proposed regulations will introduce a structured system for licensing and supervising operators, regulating collection and aggregation centres, tracking transactions and strengthening environmental and occupational safety compliance.
He stressed that the initiative was not intended to undermine legitimate businesses but to create an accountable operating environment that would protect investors and prevent the circulation of stolen metallic materials.
“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.
The minister also called for stronger supplier identification, verification of material sources, proper transaction records and collaboration with security and law enforcement agencies to prevent stolen metals from entering the recycling market.
He, however, emphasised the need to accommodate small-scale scrap collectors and traders, noting that thousands of Nigerians depend on the sector for their livelihoods.
Audu said the proposed framework would provide a pathway for their formalisation through requirements proportionate to the size and risks of their operations, while ensuring that large-scale recycling and processing facilities meet appropriate licensing and operational standards.
He urged stakeholders to use the validation exercise to identify gaps in the draft regulations, clarify provisions and make practical recommendations that would support effective implementation.
Also speaking, the Permanent Secretary of the Ministry, Amb. Nura Abba Rimi, represented by the Director of Metallurgical Inspectorate and Environmental Protection Department, Christopher T. Wanje, said a well-regulated scrap metal industry was essential to building a resilient and self-sustaining steel sector.
He said the Federal Government, under President Bola Tinubu’s Renewed Hope Agenda, was committed to developing a competitive steel industry capable of supporting industrialisation, economic diversification and national development.
According to him, the proposed regulations would help curb the illegal trade in stolen metallic materials, protect public and private infrastructure and ensure that the economic benefits of metal recycling contribute 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 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 for the steel sector.
He said the validation process represented an important step towards establishing an organised, regulated and economically viable scrap and waste industry in the country.
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 an important economic resource, a major raw material for steel production and a source of livelihood for thousands of Nigerians.
However, he warned that inadequate regulation could expose the environment and public health to serious risks, while commending the Ministry for initiating the regulatory intervention.
Also, the Business Manager and representative of Kam Steel Integrated Company Ltd., 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 training for scrap collectors, standardised grading procedures, investment in modern sorting and shredding technologies and increased local utilisation of Nigerian scrap metal.
Olanrewaju said effective implementation of the proposed regulations would help channel locally generated scrap into domestic steel production, strengthen manufacturing capacity and revitalise the country’s steel industry.
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