The Federal Government is introducing stricter regulations for Nigeria’s scrap metal industry to tackle the illegal trade in stolen metals and prevent the vandalism of critical infrastructure.
The proposed regulations will require scrap metal dealers to obtain licences, verify the sources of materials and maintain transaction records to prevent stolen metals from entering the recycling market.
The Minister of Steel Development, Shuaibu Audu, disclosed this during a stakeholders’ engagement on the validation of the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, in Lagos.
Audu, who was represented by the ministry’s Director of Metallurgical Raw Material Development and Investment Promotion, Ime Eprikpo, said the framework would establish a transparent and organised scrap metal industry.
He expressed concern that poorly regulated scrap metal activities had encouraged the theft of electricity cables, railway components, manhole covers and other metallic installations.
According to him, such activities cause economic losses, disrupt essential public services, endanger lives and increase infrastructure maintenance costs.
“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.
The minister explained that the proposed regulations would introduce a licensing and monitoring system for scrap metal collectors, traders, aggregation centres and recycling facilities.
He added that the framework would strengthen environmental protection, improve occupational safety and ensure proper documentation of transactions.
Audu, however, assured small-scale scrap collectors and traders that the government would not introduce unnecessary restrictions that could threaten their livelihoods.
He said the regulations would provide opportunities for informal operators to formalise their businesses through requirements that reflect the size and risks of their operations.
The minister also called for stronger collaboration among regulators, security agencies and law enforcement authorities to identify scrap metal suppliers and prevent the sale of stolen materials.
In his address, the ministry’s Permanent Secretary, Nura Abba Rimi, represented by Christopher Wanje, said effective regulation of the industry was essential to developing Nigeria’s domestic steel sector.
He noted that the proposed framework would protect public and private infrastructure while ensuring manufacturers had access to reliable locally sourced 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,” Rimi said.
Meanwhile, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as a landmark development for the industry.
He said the initiative represented an important step towards building an organised, regulated and economically viable scrap metal sector.
The proposed regulations form part of the Federal Government’s efforts to strengthen local manufacturing, promote metal recycling and support the development of Nigeria’s steel industry.
