The Federal Government has proposed new regulations to sanitise Nigeria’s scrap metal industry and curb the theft of metals used in critical infrastructure, including electricity cables, railway components and manhole covers.
The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, will require operators to obtain licences, verify the sources of scrap materials and maintain transaction records to prevent stolen metals from entering the recycling market.
The Minister of Steel Development, Shuaibu Audu, disclosed this at a two-day stakeholders’ engagement on the validation of the proposed regulations in Lagos.
Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the framework would establish a transparent and organised scrap metal value chain.
He expressed concern that poorly regulated activities in the sector had encouraged the theft and vandalism of public and private infrastructure, resulting in economic losses, disruption of essential services and increased maintenance costs.
The minister, however, said the government would regulate the industry without undermining the livelihoods of Nigerians engaged in legitimate scrap metal collection and trading.
According to him, the proposed regulations will introduce a structured licensing system, regulate collection and aggregation centres, improve transaction traceability and strengthen monitoring and enforcement.
He added that the framework would promote environmental protection, occupational safety and the supply of locally sourced raw materials to steel manufacturers.
Audu called for stronger identification and verification of scrap suppliers, proper documentation of transactions and increased collaboration among regulatory bodies, security agencies and law enforcement authorities.
He also said the regulations would allow small-scale collectors and traders to formalise their businesses through requirements that reflect the size and risks of their operations.
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 industry was necessary to develop a competitive domestic steel sector.
Rimi noted that the proposed framework would help protect public and private infrastructure, discourage the illegal trade in stolen metals and ensure that recycling contributed to national industrial development.
Also speaking, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as an important step towards establishing an organised and economically viable scrap metal industry.
He said the engagement would help create a regulated environment capable of supporting legitimate businesses, attracting investment and strengthening the country’s steel industry.