In October 2026, the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) embarked on industrial action over disagreements involving scrap metal prices, weighing practices and the participation of steel manufacturers in the trading business.

The association also raised concerns about alleged undervaluation of scrap materials and deductions that it said were placing financial pressure on its members.

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The Federal Government subsequently appealed to the dealers to suspend their industrial action and return to negotiations, acknowledging the need for practical measures to address the concerns.

this background, the proposed regulations could become an important test of the government’s ability to protect public infrastructure without creating additional difficulties for legitimate operators.

Audu said the government intended to introduce licensing requirements proportionate to the size and risks of different businesses.

Under the proposed arrangement, small-scale collectors would have an opportunity to formalise their activities, while larger aggregation centres and recycling facilities would face more extensive operational, environmental and safety requirements.

The government also wants better records of scrap transactions, including the identification of suppliers and verification of the origins of materials entering the recycling chain.

The approach builds on existing environmental and industrial oversight responsibilities. The National Environmental (Base Metals, Iron and Steel Manufacturing/Recycling Industries) Regulations, 2011, already provide an environmental framework for activities within the metals recycling sector.

The need for stronger controls has also been highlighted by incidents in different parts of the country.

In August 2026, The PUNCH reported widespread metal theft in Lagos, including the removal of electrical wiring, reinforcement rods, bridge components and other metallic materials from public and private structures.

The report illustrated how stolen materials can enter the scrap trade, while leaving infrastructure damaged and potentially endangering residents.

Similarly, the Federal Government has previously warned that the purchase of stolen railway components contributes to the vandalism of critical national assets and increases the cost of maintaining the rail network.

At the Lagos validation engagement, Permanent Secretary Nura Abba Rimi, represented by Christopher Wanje, reinforced the government’s position that a properly organised recycling industry could support domestic steel production.

He said the objective was to create an accountable business environment that would encourage investment while ensuring manufacturers had access to reliable supplies of locally sourced raw materials.

“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.

The National President of NASWDEN, Ogbu Luke Uchechukwu, also welcomed the stakeholder engagement, describing it as an important development for the organisation and the wider steel industry.

Uchechukwu said the exercise offered an opportunity to establish a more structured and economically sustainable scrap and waste business environment.

His support is particularly significant given the disagreements between scrap dealers and government representatives in the preceding weeks.

The proposed framework will therefore need to address both sides of the industry’s concerns, ensuring that legitimate dealers are not unfairly restricted while preventing stolen materials from being sold through commercial recycling channels.

The government said submissions from stakeholders would be considered before the regulations are finalised. Implementation will also require cooperation between regulatory institutions, security agencies, recycling businesses and industry associations.

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Ultimately, the success of the proposed scrap metal licensing system will depend on how effectively it improves traceability, prevents infrastructure theft and provides a workable path for thousands of Nigerians who depend on the recycling trade for their livelihoods.