Federal Govt To Regulate Scrap Metal Trade, Curb Infrastructure Vandalism

The Federal Government is set to introduce stricter regulations in Nigeria’s scrap metal industry to curb the theft and illegal trade of metals, particularly electricity cables, railway components and manhole covers, whose vandalism has continued to threaten critical national infrastructure.

The proposed regulations will compel scrap metal dealers and recycling operators to obtain appropriate licences, verify the sources of materials and maintain transaction records to prevent stolen metals from entering the recycling value chain.

The Minister of Steel Development, Shuaibu Audu, disclosed this at 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 Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the government was developing a structured regulatory framework to sanitise the industry, protect public and private infrastructure and strengthen local steel manufacturing.

He expressed concern that poorly regulated scrap metal activities had encouraged the theft and vandalism of public and private infrastructure, leading to economic losses, disruption of essential services and increased maintenance costs.

The minister, however, said the government would address the challenges without undermining the livelihoods of thousands of Nigerians engaged in scrap metal 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,” Audu stated.

He noted that scrap metal remained an important raw material for steel production, foundry operations and other manufacturing activities, stressing that an organised recycling industry could reduce material wastage, create jobs and support Nigeria’s industrialisation drive.

According to him, the proposed regulations would introduce a structured system for licensing and supervising operators, regulating collection and aggregation centres, ensuring transaction traceability and improving monitoring and enforcement.

The framework is also expected to strengthen environmental protection and occupational safety standards while discouraging the illicit acquisition and sale of stolen metallic materials.

Audu specifically identified the theft of electrical cables, railway components, manhole covers and other metallic installations as a major threat to national infrastructure.

He explained that the consequences extended beyond the financial value of stolen materials, as the activities disrupted public services, endangered lives and increased the cost of maintaining critical infrastructure.

To address the problem, he called for stronger identification and verification of scrap suppliers, proper documentation of transactions and improved collaboration among regulators, security agencies and law enforcement authorities.

On concerns about the impact of the proposed regulations on informal operators, the minister said the framework would provide opportunities for small-scale collectors and traders to formalise their businesses through requirements that reflect the size and risks of their operations.

He stressed that the government did not intend to impose unnecessary restrictions on small businesses but would ensure that large-scale aggregation, processing and recycling facilities operated under appropriate licensing and safety standards.

Audu urged stakeholders to scrutinise the draft regulations and identify areas requiring clarification, particularly implementation arrangements, operational requirements and compliance costs.

He assured participants that their submissions would be considered before the regulations were finalised, adding that the ministry would collaborate with relevant institutions to build enforcement capacity, improve public awareness and strengthen data collection across the industry.

In his address, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said an effectively regulated scrap metal industry was essential to developing a competitive domestic steel sector.

He said the proposed regulations would curb the illegal trade in stolen metals, protect public and private infrastructure and ensure that the economic benefits of recycling contributed to national development.

“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,” Rimi stated.

Also speaking, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the engagement as a landmark development for the steel industry.

He said the validation exercise went beyond reviewing a policy document, describing it as an important step towards establishing an organised, regulated and economically viable scrap and waste industry.