Scrap dealers threaten nationwide shutdown over price cuts

File copy of scrap pickers.

Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have threatened to halt supplies to iron and steel companies nationwide over alleged irregularities in the industry.

The association said the industrial action would commence on October 1 and initially run until October 15, 2026, with the possibility of an indefinite extension if its grievances were not resolved.

The directive was contained in a statement issued in Kano on Thursday by the association’s Deputy National President, Aminu Hassan Soja, on behalf of the National President, Abdulfatah Ogunwale.

According to the statement, NASWDEN alleged that some iron and steel companies had repeatedly reduced scrap metal prices without adequate notice, exposing dealers who had already bought and transported materials at higher prices to heavy losses.

“The incessant and deliberate reduction in the prices of scrap metals without adequate prior notice has placed considerable financial pressure on our members,” Soja said.

He said dealers could lose between N3m and N6m on a single truckload when companies suddenly reduced their purchase prices.

The association also alleged that some companies deducted between one and five per cent from transactions under what they described as “extra dust”, which NASWDEN considered an additional financial burden on dealers.

“Another concern is the alleged increasing involvement of foreigners in the scrap metal business, including the establishment of dumpsites and collection centres across the country,” the statement said.

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NASWDEN said the development was making it increasingly difficult for indigenous scrap dealers to operate, while calling for stronger regulation of the sector.

The association further alleged that some iron companies purchased scrap from unregistered or uncertified dealers and agents, warning that such practices could encourage the circulation of vandalised public and private property.

“The purchase of scrap from unregistered dealers and agents must be properly regulated and verified to ensure that materials entering the steel industry are obtained through legitimate channels,” Soja said.

Ogunwale urged members to remain peaceful and law-abiding during the planned industrial action, directing them to avoid confrontation, violence, destruction of property and other acts capable of disrupting public order.

“We are seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies,” the association said.

NASWDEN called on relevant government agencies, stakeholders in the steel sector and the public to support efforts to resolve the dispute, while urging its members to comply with the directive from October 1.