The Federal Government has unveiled plans to introduce a licensing and regulatory framework for scrap metal dealers across Nigeria as part of efforts to tackle the theft of public infrastructure, illegal metal trading and vandalism.
The proposed regulations, known as the Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, are expected to establish stricter controls over the collection, purchase, transportation, aggregation and recycling of scrap metals.
The Minister of Steel Development, Shuaibu Audu, disclosed the development during a two-day stakeholders’ engagement on the validation of the proposed regulations in Lagos.
Audu, who was represented at the meeting by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the initiative was designed to sanitise the scrap metal industry, protect critical infrastructure and strengthen Nigeria’s domestic steel manufacturing sector.
According to the minister, the proposed framework will require operators to obtain appropriate licences, verify the sources of materials they purchase and maintain proper records of transactions to prevent stolen metals from entering the recycling market.
The government is particularly concerned about the theft and destruction of electricity cables, railway components, manhole covers and other metallic installations belonging to public institutions and private property owners.
Audu said poorly regulated activities within the industry had encouraged the vandalism of infrastructure, resulting in financial losses, disruption of essential services, safety risks and increased maintenance costs.
He, however, stressed that the government was not seeking to eliminate legitimate scrap metal businesses or undermine the livelihoods of thousands of Nigerians engaged in the trade.
“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.
Under the proposed framework, the government intends to introduce a structured licensing and supervision system for operators, regulate collection and aggregation centres, improve the traceability of transactions and strengthen monitoring and enforcement.
The regulations are also expected to establish clearer environmental protection and occupational safety standards for businesses involved in scrap collection, processing and recycling.
Audu explained that scrap metal remained an important raw material for steel production, foundry operations and other manufacturing activities, adding that an organised recycling industry could reduce waste, create employment opportunities and support Nigeria’s industrialisation efforts.
He maintained that the sector’s economic potential could only be fully realised through lawful sourcing, responsible handling, effective monitoring and reliable supply arrangements.
The minister also called for improved identification and verification of scrap suppliers, proper documentation of transactions and stronger collaboration among regulators, security agencies and law enforcement authorities.
Addressing concerns about the potential impact of the proposed regulations on small-scale operators, Audu said the framework would provide opportunities for informal collectors and traders to formalise their businesses through requirements suited to the size and risks of their operations.
He added 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.
The stakeholders’ engagement provided an opportunity for industry operators and other participants to examine the draft regulations and make recommendations, particularly on implementation, operational requirements and compliance costs.
The minister assured participants that their submissions would be considered before the regulations were finalised.
The Permanent Secretary of the Ministry of Steel Development, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, also emphasised the importance of regulating the industry.
Rimi said a properly organised scrap metal sector would help protect public and private infrastructure, discourage the illegal trade in stolen materials and provide local steel manufacturers with a more dependable supply of raw materials.
The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as an important development for the industry.
He said the engagement offered an opportunity to establish a more organised and economically sustainable scrap and waste sector.
The proposed federal regulations come amid growing concerns over the activities of metal scavengers and the destruction of infrastructure in different parts of the country.
In Edo State, for instance, Governor Monday Okpebholo announced plans in October 2025 to introduce legislation regulating scavengers and scrap dealers following concerns about the theft of iron rods, electricity cables, manhole covers and streetlight poles.
The Nigeria Security and Civil Defence Corps had also called for registration, licensing, monitoring and documentation of scrap dealers as part of efforts to prevent stolen public assets from being traded through scrap markets.
The proposed federal framework is expected to provide a more coordinated regulatory structure for the industry, although its final provisions, implementation arrangements and enforcement procedures will depend on the outcome of the validation process.
The government is expected to work with relevant institutions and industry stakeholders to strengthen enforcement capacity, improve public awareness and develop reliable data on operators across the scrap metal value chain.
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