The Federal Government has begun moves to sanitise Nigeria’s scrap metal industry through a proposed regulatory framework aimed at curbing the trade in stolen metals and protecting critical infrastructure from vandalism.
The proposed regulations will require scrap metal dealers and recycling operators to obtain licences, establish the sources of materials they purchase and keep proper records of their transactions to prevent stolen metals from entering the recycling chain.
The Minister of Steel Development, Shuaibu Audu, disclosed this in a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, on Tuesday.
Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, spoke at a two-day stakeholders’ engagement in Lagos on the validation of the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.
He said the initiative was designed to establish an organised and transparent industry, improve the availability of locally sourced raw materials for steel production and address the growing cases of infrastructure vandalism linked to illegal scrap metal dealings.
The minister expressed concern that the absence of effective regulation had encouraged the theft of electrical cables, railway components, manhole covers and other metallic infrastructure, leading to financial losses, disruption of essential services and increased maintenance expenses.
He, however, stressed that the government’s intervention was not intended to cripple legitimate businesses or deprive Nigerians who depend on scrap metal collection and trading of their livelihoods.
“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,” Audu said.
He described scrap metal as a vital resource for steel production, foundry operations and other manufacturing activities, noting that an efficient recycling industry could reduce waste, generate employment and contribute to the country's industrial growth.
According to him, the proposed framework will introduce licensing and monitoring mechanisms for operators, regulate collection and aggregation centres, improve transaction tracking and strengthen enforcement across the sector.
It will also establish standards for environmental protection and workplace safety while providing measures to prevent the purchase and sale of stolen metallic materials.
Audu called for proper identification of scrap suppliers, verification of material sources and comprehensive documentation of transactions, alongside stronger cooperation among regulatory agencies, security organisations and law enforcement authorities.
Addressing concerns about the impact of the proposed requirements on small-scale operators, he said the framework would allow informal collectors and traders to formalise their businesses through compliance measures suited to the scale and nature of their operations.
He added that while small businesses would not be subjected to unnecessary restrictions, large-scale collection, processing and recycling facilities would be required to meet relevant licensing and safety standards.
The minister urged industry stakeholders to scrutinise the draft regulations and make recommendations, particularly on implementation procedures, operational conditions and the cost of compliance.
He assured participants that their contributions would be considered before the regulations were concluded, adding that the ministry would collaborate with relevant institutions to strengthen enforcement, public sensitisation and data management within the industry.
Also speaking, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said effective regulation of the scrap metal sector was necessary for the development of a competitive domestic steel industry.
He noted that the proposed framework would help check the circulation of stolen metals, safeguard public and private infrastructure and ensure that the benefits of recycling contribute meaningfully to the economy.
“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,” Rimi said.
The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as a significant milestone for the country's steel industry.
He said the engagement represented an important step towards building a structured and economically sustainable scrap and waste management sector rather than merely reviewing a policy document.
The proposed regulations form part of the Federal Government’s broader efforts to strengthen local manufacturing, promote industrial development and improve the supply of raw materials to Nigeria’s steel industry.
