The Federal Government has urged scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) to suspend their ongoing industrial action as the government begins talks aimed at resolving grievances disrupting activities across Nigeria’s steel value chain.
Key Highlights
- FG urges NASWDEN members to suspend their ongoing strike.
- Government begins talks with scrap dealers over grievances in the steel sector.
- NASWDEN alleges undervaluation of scrap metals and manipulation of weighing scales.
- Scrap dealers also oppose direct scrap purchases by steel companies and billet imports.
- Minister of Steel Development directs officials to mediate with NASWDEN leadership.
- FG says prolonged disruption could affect scrap-metal supply to steel manufacturers.
- Nigeria targets 10 million metric tonnes of annual steel production by 2030.
FG Begins Talks With Scrap Dealers
The Minister of Steel Development, Prince Shuaibu Audu, made the appeal through the ministry’s Permanent Secretary, Ambassador Nura Abba Rimi, according to a statement issued on Thursday by the Head of Press and Public Relations, Tine-Iulun M.A.
The intervention follows industrial action by NASWDEN members over what the association described as practices undermining the operations and economic interests of local scrap dealers.
The Federal Government said it recognised the concerns raised by the association and was considering them in consultation with the National Steel Council.
Why Scrap Dealers Are on Strike
Among the issues raised by NASWDEN are alleged undervaluation of scrap metals, manipulation of weighing scales resulting in weight reductions, direct purchases of scrap metals by local and other steel-producing companies, and the importation of billets.
The ministry said the concerns were formally presented to it through the National Steel Council.
“The Minister acknowledges the concerns raised by NASWDEN, which were formally presented to the Ministry through the National Steel Council,” the statement said.
The government said the grievances were significant because scrap dealers play an important role in supplying raw materials to steel manufacturers and supporting activities across Nigeria’s domestic steel value chain.
Ministry Plans Mediation With NASWDEN
Audu has directed the Permanent Secretary, working with the Office of the Executive Secretary of the National Steel Council, to invite the leadership of NASWDEN for further discussions and mediation.
According to the ministry, the engagement will examine the association’s grievances and assess their implications for scrap dealers, steel manufacturers and other businesses operating within the sector.
“The Ministry recognises the seriousness and importance of these concerns and is currently giving them due consideration in consultation with the National Steel Council,” it stated.
The government said it intends to develop practical, balanced and sustainable measures capable of addressing the complaints while protecting the interests of steel manufacturers and other operators.
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FG Warns Against Further Disruption
The ministry urged NASWDEN and steel producers to avoid actions that could further disrupt operations, stressing the need for dialogue and good-faith negotiations.
A prolonged dispute could affect the supply of scrap metal, an important raw material for some steel manufacturers, while also disrupting businesses and workers involved in the scrap-metal trade.
The minister therefore appealed to the dealers to suspend the industrial action while negotiations continue.
“The Honourable Minister therefore calls on NASWDEN to sheathe its sword, suspend the ongoing industrial action and return to the negotiation table,” the statement said.
The ministry assured NASWDEN and other stakeholders that it was ready to facilitate constructive engagement towards resolving the dispute.
Nigeria Targets 10 Million Tonnes of Steel by 2030
The Federal Government’s intervention comes as it seeks to expand domestic steel production and reduce Nigeria’s dependence on imported steel products.
The government has set a target of producing 10 million metric tonnes of steel annually by 2030, a goal that will require increased investment, local value addition and stronger coordination across the steel industry.
Audu also urged stakeholders to support President Bola Tinubu’s efforts to reposition the steel sector under the Renewed Hope Agenda.
“The development of a strong and competitive domestic steel industry requires the collective commitment and cooperation of all stakeholders,” he said.
FG Seeks Stable Steel Industry
The ministry said achieving the 2030 production target would require increased local value addition, investment, job creation and stronger cooperation among scrap dealers, steel manufacturers and other stakeholders.
It also assured legitimate operators that it remained committed to creating a fair and stable operating environment.
With negotiations now set to continue, the government is hoping that NASWDEN’s suspension of the strike will allow the steel value chain to resume normal operations while both sides work towards a lasting solution to the dispute.
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