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FG Urges Scrap Dealers to Suspend Strike, Promises Steel Sector Reform

The Federal Government has urged scrap metal dealers to suspend their nationwide strike and return to negotiations, promising measures to address their grievances and strengthen Nigeria’s steel industry.

Daniel Momodu · · 68
FG Urges Scrap Dealers to Suspend Strike, Promises Steel Sector Reform


The Federal Government has appealed to members of the National Association of Scrap and Waste Dealers Employers of Nigeria NASWDEN to suspend their ongoing industrial action and return to negotiations over grievances affecting the steel value chain.

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, made the appeal through the ministry’s Permanent Secretary, Ambassador Nura Abba Rimi, in a statement issued on Thursday.

NASWDEN commenced a 15-day nationwide warning strike on October 1, directing its members to suspend the supply of scrap metals to iron and steel companies.

The association’s grievances include alleged arbitrary reductions in scrap-metal prices, discrepancies in weighing procedures, direct purchase of scrap by steel-producing companies and the importation of billets.

The dealers have also raised concerns about practices they say are limiting the participation of local operators in the steel value chain.

The Federal Government said it recognised the concerns and was considering them in consultation with the National Steel Council.

Audu directed the Permanent Secretary, working with the Office of the Executive Secretary of the National Steel Council, to invite the leadership of NASWDEN for further discussions and mediation.

The ministry said the engagement would examine the implications of the grievances for scrap dealers, steel manufacturers and other operators across the sector, with the aim of developing practical and sustainable measures to address the issues.

It urged the association and steel producers to avoid actions that could further disrupt the industry and called on all parties to approach the dispute through dialogue and good-faith negotiations.

The minister said a strong domestic steel industry required cooperation among scrap dealers, manufacturers and other stakeholders, adding that no individual interest should undermine the broader objective of industrial development.

The government is targeting annual domestic steel production of 10 million metric tonnes by 2030 and says achieving the target will require increased local value addition, investment and job creation.

A prolonged disruption in scrap-metal supplies could affect steel manufacturers that depend on scrap as a raw material and businesses operating across the sector.

Audu therefore urged NASWDEN to suspend the strike while negotiations continue, assuring the association that the ministry was prepared to facilitate a resolution of the dispute.

NASWDEN had earlier said its industrial action was intended to draw attention to what it described as unfair practices by some steel companies, including sudden price reductions and disputed weighing procedures.

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