Fidelia Soriwei, Abuja
The Federal Government is planning to introduce mandatory licensing and stricter monitoring of scrap metal dealers across Nigeria as part of efforts to curb the theft of electrical cables, railway components, manhole covers and other critical infrastructure.
The proposed measures are contained in the Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, which seek to establish a transparent and properly monitored scrap metal industry while preventing stolen materials from entering the recycling market.
The Minister of Steel Development, Shuaibu Audu, disclosed the plans during a two-day stakeholders’ engagement in Lagos on the validation of the proposed regulations. Audu was represented at the event by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo.
In a statement issued on Tuesday by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, the minister said poorly regulated scrap metal activities had contributed to the theft and destruction of public and private infrastructure, causing economic losses, service disruptions and increased maintenance expenses.
Audu explained that the government intended to introduce a regulatory framework requiring operators to obtain appropriate licences, verify the sources of scrap materials and maintain proper records of transactions. The framework would also provide for the supervision of collection and aggregation centres, alongside improved monitoring and enforcement.
He, however, emphasised that the initiative was not designed to undermine legitimate businesses or deprive thousands of Nigerians who depend on scrap 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 stated.
The minister identified the theft of electrical cables, railway components and manhole covers as particularly concerning, noting that the consequences extended beyond the financial value of the stolen materials to include threats to public safety, disruption of essential services and additional costs of infrastructure maintenance.
He called for stronger verification of scrap suppliers, proper documentation of transactions and increased cooperation among regulatory institutions, security agencies and law enforcement authorities to prevent the illegal acquisition and sale of metallic materials.
Under the proposed framework, small-scale collectors and informal traders would have an opportunity to formalise their businesses through requirements tailored to the size and risks of their operations. Audu said the government would avoid unnecessary restrictions on small businesses while ensuring that large-scale aggregation, processing and recycling facilities complied with appropriate licensing and safety standards.
Beyond tackling metal theft, the regulations are expected to improve the availability of locally sourced raw materials for steel manufacturers, reduce material waste, create employment opportunities and strengthen Nigeria’s domestic steel production capacity.
The minister also said the framework would introduce stronger environmental protection and occupational safety standards, adding that an organised recycling industry could contribute significantly to the country’s industrialisation drive.
He urged industry stakeholders to scrutinise the draft regulations and make recommendations on implementation, operational requirements and compliance costs. He assured participants that their submissions would be considered before the regulations were finalised.
Also speaking, the Permanent Secretary of the Ministry of Steel Development, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said effective regulation of the industry was necessary to develop a competitive domestic steel sector.
Rimi maintained that the proposed measures would protect public and private infrastructure, discourage the illegal trade in stolen metals and provide manufacturers with a reliable supply of locally recovered raw materials.
“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 stated.
The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the stakeholder engagement as a landmark development for the industry, saying it represented an important step towards building an organised and economically viable scrap and waste sector.
The proposed regulations form part of the Federal Government’s broader efforts to strengthen local manufacturing, protect critical infrastructure and expand Nigeria’s steel industry through improved metal recycling and the development of a reliable domestic raw material supply chain.
