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By Stella Odueme
The Federal Government has unveiled plans to strengthen regulation of Nigeria’s scrap metal industry to curb the theft of critical infrastructure, promote responsible recycling and boost local steel production.
The initiative is being pursued through the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, disclosed this during a stakeholders’ engagement on the validation of the draft regulations in Lagos.
Audu, represented by the Director of Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the proposed framework would establish a transparent and sustainable scrap metal value chain in support of the country's industrialisation drive.
In a statement issued on Tuesday by the Head of Press and Public Relations, Tine-Iulun M. A., the minister described scrap metal as a critical raw material for steel production, foundry operations and other manufacturing activities.
He said effective management of the sector would promote recycling, reduce waste, generate employment and stimulate economic growth.
However, Audu expressed concern that inadequate regulation had contributed to the theft and vandalism of public and private infrastructure, unsafe dismantling practices, environmental pollution and significant economic losses.
He explained that the proposed regulations would introduce licensing and supervision of operators, regulate collection and aggregation centres, ensure traceability of transactions and strengthen environmental, occupational safety and enforcement standards.
The minister emphasised that the policy was not designed to frustrate legitimate businesses but to provide an organised operating environment that would protect genuine investors and operators.
He also advocated the inclusion of small-scale operators in the regulatory framework, noting that thousands of Nigerians depended on scrap metal collection and trading for their livelihoods.
Audu specifically condemned the theft of metallic components of critical infrastructure, including electrical cables, railway materials and manhole covers, warning that such criminal activities disrupted public services, endangered lives and increased government maintenance costs.
He urged operators to verify the sources of scrap materials, identify suppliers and maintain proper transaction records, while calling for stronger collaboration with security and law enforcement agencies.
According to him, the stakeholders’ engagement would enable industry operators, government institutions, environmental and security agencies and professional bodies to review the proposed regulations and contribute recommendations towards their 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 the proposed regulations were consistent with President Bola Tinubu’s Renewed Hope Agenda for developing a resilient and self-sustaining steel industry.
He noted that a well-regulated scrap metal sector would guarantee access to raw materials for steel production, promote resource efficiency, create jobs and strengthen local manufacturing.
Rimi added that the framework would also help eliminate the illegal trade in stolen metallic materials, safeguard critical infrastructure and ensure that the benefits of recycling contributed meaningfully to national development.
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 an important step towards building an organised and economically viable industry.
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, stressed the need for effective regulation to address environmental and public health risks associated with poorly managed scrap metal activities.
He commended the Ministry for initiating the proposed regulatory framework.
Also, the Business Manager and representative of Kam Steel Integrated Company Limited, Busari Olanrewaju, described scrap metal as the backbone of Nigeria’s steel industry.
He expressed the company's readiness to partner with the Ministry through training programmes for scrap collectors, standardised grading procedures, investment in modern sorting and shredding technologies and increased utilisation of locally sourced scrap materials.