FG Moves to Regulate Scrap Metal Trade, Targets Infrastructure Vandalism

The Federal Government has unveiled plans to introduce stricter regulations for Nigeria’s scrap metal industry as part of efforts to curb the theft of metallic materials, protect critical infrastructure and strengthen the country’s steel manufacturing sector.
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, following a stakeholders’ engagement on the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, held in Lagos.
Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the proposed regulations would establish a transparent and properly organised scrap metal value chain.
He explained that the initiative would introduce mandatory licensing for operators, verification of scrap material sources and proper documentation of transactions to prevent stolen metals from entering the recycling market.
According to him, the government is concerned about the growing activities of illegal scrap dealers, whose operations have contributed to the theft and vandalism of electricity cables, railway components, manhole covers and other critical infrastructure.
The minister noted that the activities had resulted in significant economic losses, disruption of essential public services, increased maintenance costs and threats to public safety.
He, however, stressed that the government’s intention was not to undermine the livelihoods of thousands of Nigerians engaged in legitimate scrap collection and trading.
“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,” he said.
Audu described scrap metal as an important raw material for steel production, foundry operations and other manufacturing activities, noting that an organised recycling industry could reduce waste, create employment opportunities and support Nigeria’s industrialisation drive.
He said the proposed framework would provide a structured licensing and supervisory system for operators, regulate collection and aggregation centres, ensure transaction traceability and strengthen monitoring and enforcement mechanisms.
The regulations are also expected to improve environmental protection and occupational safety standards while discouraging the illegal acquisition and sale of stolen metallic materials.
The minister called for stronger collaboration among regulatory agencies, security organisations and law enforcement authorities to ensure effective implementation of the proposed framework.
Addressing concerns raised by informal operators, Audu said the regulations would provide opportunities for small-scale collectors and traders to formalise their businesses through requirements that reflect the nature, size and risks of their operations.
He maintained that the government would avoid imposing unnecessary restrictions on small businesses, while ensuring that large-scale aggregation, processing and recycling facilities complied with appropriate licensing and safety standards.
The minister urged stakeholders to scrutinise the draft regulations and make recommendations on areas requiring clarification, particularly implementation procedures, operational requirements and compliance costs.
He assured participants that their submissions would be considered before the regulations were finalised.
In his remarks, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, described effective regulation of the scrap metal industry as essential to developing a competitive domestic steel sector.
Rimi said the proposed framework would help tackle the illegal trade in stolen metals, safeguard public and private infrastructure and ensure that the economic benefits of recycling contributed meaningfully to national development.
He emphasised that the government’s objective was to create an enabling environment for genuine businesses and investors while ensuring that local steel manufacturers had access to reliable raw materials.
Also speaking, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the stakeholders’ engagement as a significant development for the country’s steel industry.
He said the validation exercise represented an important step towards building an organised, regulated and economically sustainable scrap and waste management sector.
The proposed regulations come amid the Federal Government’s broader efforts to strengthen local manufacturing, promote industrial development and reduce dependence on imported raw materials.
Industry stakeholders are expected to make further contributions before the proposed regulations are finalised and implemented.