Scrap Dealers Threaten Nationwide Shutdown Over Price Cuts, Foreign Operators

By Emmanuel Kwada

Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) have threatened to suspend supplies to iron and steel companies across the country over alleged unfair practices and persistent price reductions 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 raised by its members are not resolved.

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

According to the association, some iron and steel companies have repeatedly reduced the prices they pay for scrap metals without providing dealers with adequate notice.

NASWDEN said the practice had subjected its members to significant financial losses, particularly those who had purchased and transported scrap materials based on previously agreed prices.

“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 added that dealers could lose between N3m and N6m on a single truckload whenever companies unexpectedly reduce their purchase prices.

The association also raised concerns over alleged deductions of between one and five per cent from transactions under what it described as “extra dust,” saying the practice further increases the financial burden on scrap dealers.

NASWDEN also expressed concern over what it described as the growing involvement of foreign nationals in the scrap metal trade, including the establishment of dumpsites and collection centres in different parts of the country.

The association said the development was making it increasingly difficult for indigenous operators to compete and called for stronger government regulation of the sector.

Another major concern raised by the dealers was the alleged purchase of scrap metals from unregistered or uncertified dealers and agents by some iron and steel companies.

NASWDEN warned that inadequate verification of scrap sources could create opportunities for the sale of vandalised public infrastructure and private property into the steel industry.

“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.

Despite announcing the planned suspension of supplies, the association urged its members to remain peaceful and law-abiding throughout the period.

Ogunwale directed members to avoid confrontation, violence, destruction of property and any other actions that could threaten public order.

NASWDEN said it remained open to dialogue and negotiation with iron and steel companies, stressing that its objective was to achieve a fair and mutually acceptable resolution of the grievances.

The association also appealed to relevant government agencies, stakeholders in the steel industry and members of the public to support efforts to resolve the dispute before the planned action begins.

If implemented, the suspension could affect the supply of scrap metals to steel manufacturers and other businesses that rely on recycled metal as a major industrial input.

The association, however, maintained that its members would comply with the directive to suspend supplies from October 1 unless a resolution is reached before then.