The Federal Government has unveiled plans to regulate Nigeria’s scrap metal industry through a licensing system aimed at tackling the theft of metallic materials and the vandalism of public infrastructure.
The proposed regulations will require scrap metal dealers to obtain licences, verify the sources of materials they purchase and keep proper transaction records to prevent stolen metals from finding their way into the recycling market.
The Minister of Steel Development, Prince Shuaibu Audu, disclosed this during a stakeholders’ meeting on 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 initiative was designed to create a transparent and well-organised scrap metal industry.
According to a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, the proposed framework is also expected to improve the supply of locally sourced raw materials to steel manufacturers, formalise the operations of informal dealers and promote environmental protection and workplace safety.
The minister expressed concern that inadequate regulation of the sector had contributed to the theft and destruction of public and private infrastructure, including electricity cables, railway components and manhole covers.
He said the activities had caused financial losses, disrupted essential services and increased the cost of maintaining infrastructure.
“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 explained that scrap metal recycling remained vital to steel production, foundry operations and other manufacturing activities, noting that an organised sector could minimise waste, generate employment and contribute to Nigeria’s industrial development.
Audu added that the proposed regulations would establish a licensing and monitoring system for operators, collection centres and recycling facilities, while introducing measures to track transactions and prevent the illegal acquisition and sale of metallic materials.
He also called for improved identification and verification of scrap suppliers, proper documentation of transactions and stronger cooperation among regulatory bodies, security agencies and law enforcement authorities.
Addressing concerns among informal operators, the minister said the framework would allow small-scale collectors and traders to formalise their businesses through requirements that would take into account the nature and scale of their operations.
He maintained that the government was not seeking to impose unnecessary restrictions on small businesses but would ensure that large-scale facilities complied with appropriate licensing and safety standards.
He urged stakeholders to scrutinise the draft regulations and make recommendations on implementation, operational requirements and compliance costs, assuring them that their contributions would be considered before the framework was finalised.
The Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, also described effective regulation of the sector as important to developing a competitive domestic steel industry.
Rimi said the proposed framework would discourage the illegal trade in stolen metals, safeguard public and private infrastructure and ensure that the benefits of recycling contributed to national economic growth.
“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.
Similarly, 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 steel industry.
He said the validation exercise was an important step towards building a structured and economically sustainable scrap and waste industry, rather than merely reviewing a policy document.
The proposed regulations form part of the Federal Government’s broader efforts to strengthen local manufacturing and develop the steel sector through improved access to raw materials and more efficient recycling activities.
