Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have threatened to stop supplying iron and steel companies across the country over what they described as unfair practices and irregularities in the industry. The association said the planned industrial action would begin on October 1, 2026, and continue until October 15. It warned that the action could be extended indefinitely if the issues raised by its members were not addressed.
The position of the association was contained in a statement issued in Kano on Thursday by its Deputy National President, Aminu Hassan Soja, on behalf of the National President, Abdulfatah Ogunwale. NASWDEN alleged that some iron and steel companies had repeatedly reduced their buying prices for scrap metals without giving dealers sufficient notice. Soja also called for tighter checks on the sources of scrap materials supplied to steel companies. He said companies should ensure that they only buy from dealers and agents whose businesses and materials could be properly verified.
According to the association, the practice had resulted in serious financial losses for dealers who had already purchased and transported scrap materials based on the earlier prices. Soja said the frequent reduction in prices was putting considerable pressure on members of the association.“The incessant and deliberate reduction in the prices of scrap metals without adequate prior notice has placed considerable financial pressure on our members,” he said. He added that a dealer could lose between N3m and N6m on a single truckload when the purchasing company suddenly reduced its price after the materials had already been bought and transported. The organisation also raised worries about the reported subtraction of their money being made by some companies during trade.
It alleged that between one and five per cent was sometimes deducted under what was described as “extra dust”, which NASWDEN said had further increased the financial burden on scrap dealers. Another issue raised by the association was the alleged growing involvement of foreigners in the scrap metal business. NASWDEN claimed that foreigners were increasingly establishing dumpsites and collection centres in different parts of the country, a development it said was making it more difficult for indigenous scrap dealers to compete and remain in business. The association called for stronger regulation of the sector to address the situation. It also accused some iron and steel companies of buying scrap materials from unregistered or uncertified dealers and agents.
NASWDEN warned that such practices could create room for the sale of vandalised public and private property under the guise of legitimate scrap metal. “The buying of scrap from unlicensed machinists and agents must be appropriately managed, supervised and verified to ensure that materials entering the steel industry are obtained through authorised channels,” Soja said. Meanwhile, Ogunwale appealed to members of the association to remain peaceful and law-abiding throughout the period of the planned action. He urged members not to be involved in damage to property or anything that has to do with destruction of public property or violence. The organisation said their aim is not to create unnecessary trouble but to make sure that their concerns are being resolved and addressed by the affected companies.
“We are seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies,” NASWDEN said. The association therefore appealed to relevant government agencies, stakeholders in the steel industry and members of the public to support efforts aimed at resolving the dispute. It also encouraged members to abide by the directive to suspend supplies from October 1 while bargaining, and efforts to settle the resentment continue
