Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have threatened to halt supplies to iron and steel companies nationwide from October 1, 2026, over alleged unfair pricing practices and other grievances in the sector.
NASWDEN said the planned industrial action would initially run until October 15, with the possibility of an indefinite extension if its concerns were not resolved.
The association said the action would involve suspending the supply of scrap metal to iron-smelting companies producing iron rods and other steel products.
One of the major complaints raised by the dealers is the alleged sudden reduction of scrap-metal prices by some steel companies without adequate notice.
NASWDEN said dealers could suffer heavy losses when companies reduce their purchase prices after the scrap had already been bought and transported based on earlier prices.
According to the association, a dealer could lose between N3m and N6m on a single truckload when prices are unexpectedly reduced.
The group also alleged that some companies deduct between one and five per cent from transactions under what it described as “extra dust”.
NASWDEN said the deductions placed an additional financial burden on dealers and called for clearer and more transparent pricing arrangements.
The association also expressed concern over what it described as the increasing involvement of foreign operators in the scrap-metal business, including the establishment of dumpsites and collection centres.
It called for stronger regulation to protect indigenous operators and ensure fair competition in the industry.
Another major concern is the alleged purchase of scrap from unregistered dealers and agents.
NASWDEN said steel companies should properly verify the source of scrap materials before purchasing them to prevent vandalised public and private property from entering the steel supply chain.
The association said it remained opposed to criminality and vandalism in the sector and urged greater cooperation among dealers, steel companies, government agencies and security organisations.
Despite the planned industrial action, NASWDEN directed its members to remain peaceful and law-abiding.
Members were warned against confrontation, violence, destruction of property and other acts capable of disrupting public order.
The association said it was seeking a fair and mutually acceptable resolution through dialogue and negotiations with affected iron and steel companies.
It also appealed to relevant government agencies and stakeholders in the steel industry to intervene and help resolve the dispute.
The planned action comes amid continuing efforts to regulate Nigeria’s scrap-metal trade and tackle the activities of vandals operating under the cover of the industry.
NASWDEN has previously said it was working with security agencies to identify and remove criminal elements from the scrap business.
If the planned stoppage takes effect on October 1 and lasts beyond the initial two-week period, steel companies dependent on scrap supplies could face disruptions, although the eventual impact will depend on the level of participation by dealers and the outcome of negotiations.
For NASWDEN, however, the immediate objective remains the resolution of the dispute through dialogue rather than a prolonged shutdown.
