Steel Devt: FG Moves To Regulate Scrap Metal Value Chain, Protect National Infrastructure

•Minister urges stakeholders’ to validate 2026 draft scrap metal regulations Kasim Sumaina in Abuja The federal government has intensified efforts to sanitise Nigeria’s scrap metal industry, protect critical national infrastructure and strengthen the steel and metals manufacturing sector through the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026. Government through the Minister of Steel Development, Prince Shuaibu Abubakar Audu, gave the hint on Tuesday at the on-going Stakeholders’ Engagement for the Validation of the Draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026 in Lagos Speaking at the engagement themed “Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact,” the Minister explained that the proposed Regulations are designed to establish an organised, transparent and sustainable scrap metal value chain that supports Nigeria’s industrialization agenda. Prince Audu noted that scrap metal remains a critical raw material for steel making, foundry operations and other metal manufacturing activities, with enormous potential to reduce material wastage, promote circular production, create employment and stimulate economic activities across collection, transportation, processing and recycling value chain. He, however, observed that these benefits can only be fully realised through an effective Regulatory framework that ensures lawful sourcing, safe handling, transaction traceability and reliable supply of scrap materials to legitimate industrial users. According to the minister, “poorly regulated scrap metal activities encourage the theft and vandalism of public and private infrastructure, unsafe dismantling practices, environmental degradation and economic losses, while creating uncertainty for legitimate investors and manufacturers. Audu stated that the proposed Regulations would provide a structured framework for licensing and supervising operators, regulating collection and aggregation facilities, ensuring transaction traceability, strengthening environmental and occupational safety compliance, preventing illicit trade and improving monitoring and enforcement across the sector. “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,” the Minister stated. He further emphasised the importance of accommodating small-scale operators within the Regulatory framework, noting that thousands of Nigerians depend on scrap metal collection and trading for their livelihoods. He explained that the regulations would provide a practical pathway towards formalisation, with requirements proportionate to the scale and risks of different operations, while ensuring that large-scale aggregation, processing and recycling facilities comply with appropriate licensing and operational standards. On the protection of national assets, Audu expressed concern over the persistent theft and vandalism of metallic components of public infrastructure, including electrical cables, railway components, manhole covers and other essential installations. He stressed that such activities go beyond the loss of metallic materials, as they disrupt public services, compromise safety, increase maintenance costs and undermine national infrastructure development. He therefore called for stronger supplier identification, verification of material sources, reliable transaction records and enhanced collaboration with relevant security and law enforcement agencies to curb the illicit acquisition and trading of stolen metallic materials. Audu explained that the validation exercise provides an important opportunity for industry operators, government institutions, environmental and security agencies, professional bodies and other stakeholders to critically examine the Draft Regulations and offer practical recommendations. He urged participants to make constructive and specific submissions, particularly on provisions requiring clarification, operational implications and potential implementation challenges. In his goodwill message, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Comrade Pastor Engr. Ogbu Luke Uchechukwu, described the Stakeholders’ Engagement as a landmark development in the steel sector. He emphasized that the validation of the draft Metal Scrap Policy goes beyond reviewing a policy document, as it represents a significant step towards establishing a solid framework for a well-organized, regulated and economically viable scrap and waste industry in Nigeria.