The federal government is set to regulate Nigeria’s scrap metal industry to curb theft, protect national infrastructure and strengthen local steel production.

This is contained in a statement by the Head of Press and Public Relations, Ministry of Steel Development, Maureen Tine-Iulun, on Tuesday in Abuja.

Ms Tine-Iulun said that the Minister of Steel Development, Shuaibu Audu, said this at the ongoing stakeholders’ engagement on the validation of the proposed 2026 Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations in Lagos.

The two-day engagement which began on Monday has the theme: “Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact”.

Mr Audu, represented by Ime Eprikpo, Director of the Metallurgical Raw Material Development and Investment Promotion Department, said the regulations would promote transparency and sustainability in the scrap metal value chain.

He noted that scrap metal remains an important raw material for steel production and other manufacturing activities, with potential to create jobs and reduce material waste.

He explained that poor regulation of the industry encourages theft and vandalism of public and private infrastructure, unsafe dismantling practices and environmental degradation.

He said the proposed regulations would therefore provide a framework for licencing operators, regulating collection, aggregation facilities as well as ensuring proper documentation of transactions.

According to him, the regulations will also strengthen environmental and occupational safety standards and prevent the illegal trade in stolen metallic materials.

“Our objective is not to suppress legitimate commercial activity; rather, it will establish a system in which lawful businesses can operate with greater clarity and confidence.

”We will also ensure activities involving stolen materials, unsafe practices or environmental harm are addressed through appropriate regulatory and legal measures,” he said.

The minister added that the regulations would also accommodate small-scale operators who depended on scrap metal collection and trading for their livelihoods.

He said that licencing requirements would reflect the scale and risks of different operations while ensuring that large-scale recycling facilities met appropriate standards.

He expressed concern over the theft and vandalism of electrical cables, railway components, manhole covers and other metallic infrastructure.

He said such activities disrupted public services, compromised safety and increased government maintenance costs.

He called for stronger supplier identification, verification of material sources, reliable transaction records and collaboration with security agencies to curb the trade in stolen metals.

Mr Audu further said that the validation exercise would allow industry operators, government institutions, environmental and security agencies, professional bodies and other stakeholders to review the draft regulations.

He urged participants to make constructive submissions, particularly on provisions requiring clarification and potential implementation challenges.

He reaffirmed that the ministry would consider their submissions and work with relevant government agencies and industry operators to ensure effective implementation.

According to him, the ministry will also focus on building institutional capacity, creating public awareness, improving data collection and strengthening enforcement.

The minister emphasised that federal government remained committed to developing a competitive and sustainable steel industry through policies that encouraged investment, protected national assets and strengthened local manufacturing.

Also speaking, the Permanent Secretary in the ministry, Nura Rimi, said the federal government remains committed to developing Nigeria’s steel industry.

Mr Rimi represented by Director, Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said this was in line with President Bola Tinubu’s Renewed Hope Agenda.

He said effective regulation of scrap metal was important to local steel production, adding that the proposed regulations would sanitise the scrap metal value chain, curb illegal trade in stolen metals and protect critical public and private infrastructure.

“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,” he said.

Similarly, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Uchechukwu, described the engagement as a landmark development.

Mr Uchechukwu said the validation exercise was an important step towards establishing an organised and economically viable scrap metal industry.

In the same vein, the Director-General of the National Environmental Standards and Regulations Enforcement Agency (NESREA), Innocent Bariko, commended the ministry for initiating the proposed regulations.

Mr Bariko, represented by the Deputy Director of the Base Metal Sector, Walter Okoye, said effective regulation was necessary to protect the environment and public health.

He described scrap metal as an important economic resource, a source of livelihood and a major raw material for the steel industry.

In his remarks, Business Manager and representative of Kam Steel Integrated Company Ltd., Busari Olanrewaju, described scrap metal as the backbone of Nigeria’s steel industry.

Mr Olanrewaju reaffirmed the company’s readiness to collaborate with the ministry through training for scrap collectors and standardised grading procedures.

He also advocated investment in modern sorting and shredding technologies to improve local utilisation of Nigerian scrap metal.

(NAN)