Scrap metal suppliers across the country are set to halt deliveries to iron and steel manufacturing plants from 1 October in protest against alleged industry irregularities, the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) announced.
The initial two-week supply withdrawal, scheduled to run until 15 October 2026, could be extended indefinitely if key grievances remain unaddressed, according to a statement issued in Kano on Thursday by NASWDEN Deputy National President Aminu Hassan Soja, on behalf of National President Abdulfatah Ogunwale.
At the centre of the dispute are unannounced price cuts by steel producers, which dealers claim leave them facing severe financial exposure on materials purchased and transported at higher pre-existing rates.
“The incessant and deliberate reduction in the prices of scrap metals without adequate prior notice has placed considerable financial pressure on our members,” Soja said.
He noted that sudden price adjustments by manufacturing firms can inflict losses ranging from 3 million naira to 6 million naira on a single truckload. The association also pointed to arbitrary transaction deductions of between one and five per cent under the guise of “extra dust”, which it condemned as an unfair levy on suppliers.
Further compounding industry tensions is the expanding presence of foreign operators establishing local collection centres and dumpsites. NASWDEN warned that unregulated foreign participation is squeezing indigenous dealers out of the market, calling on authorities to enforce stricter oversight.
The association also raised security concerns over steel companies purchasing materials from unverified agents and unregistered vendors, warning that such laxity risks facilitating the trade of stolen or vandalised public and private infrastructure.
“The purchase of scrap from unregistered dealers and agents must be properly regulated and verified to ensure that materials entering the steel industry are obtained through legitimate channels,” Soja said.
Urging all members to ensure full compliance with the directive starting 1 October, Ogunwale advised dealers to maintain peace and refrain from any acts of violence, property damage, or civil disruption during the strike action.
“We are seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies,” the association stated.
NASWDEN appealed to government regulators, steel sector stakeholders, and the public to intervene and facilitate a fair resolution before the supply disruption takes effect.