The Federal Government is moving to introduce mandatory licensing and stricter oversight of Nigeria’s scrap metal industry in a bid to curb the theft of critical infrastructure, including electricity cables, railway components and manhole covers.
The proposed regulations will require scrap metal dealers to obtain operating licences, verify the sources of materials they purchase and maintain transaction records to prevent stolen metals from entering the recycling market.
The Minister of Steel Development, Shuaibu Audu, disclosed this in a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, following a stakeholders’ engagement in Lagos on Tuesday.
Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the government was developing the Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, to establish a more organised and transparent industry.
The two-day engagement focused on validating the proposed regulations, which are also expected to improve the supply of locally sourced raw materials to steel manufacturers, formalise informal scrap dealers and strengthen environmental and occupational safety standards.
The minister expressed concern that poorly regulated scrap metal activities had encouraged the theft and vandalism of public and private infrastructure, resulting in economic losses, disruption of essential services and higher maintenance costs.
He, however, said the government would address the problem without undermining the livelihoods of thousands of Nigerians who depend on scrap metal collection and trading.
“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,” Audu stated.
He described scrap metal as an important raw material for steel production, foundry operations and other manufacturing activities, noting that an organised recycling industry could reduce material wastage, create employment and support Nigeria’s industrialisation drive.
Proposed Framework
According to the FG, the proposed framework will introduce a structured licensing and supervisory system for industry operators, regulate collection and aggregation centres, improve transaction traceability and strengthen monitoring and enforcement.
It will also establish measures to improve environmental protection and occupational safety while discouraging the illicit acquisition and sale of stolen metallic materials.
Audu identified the theft of electrical cables, railway components, manhole covers and other metallic installations as a major threat to national infrastructure, warning that the consequences extended beyond the value of the stolen materials.
He said such activities disrupted public services, endangered lives and increased the financial burden of maintaining infrastructure.
The minister called for stronger identification and verification of scrap suppliers, proper documentation of transactions and closer collaboration between regulators, security agencies and law enforcement authorities.
Addressing concerns among informal operators, Audu said the proposed regulations would allow small-scale collectors and traders to formalise their businesses through requirements proportionate to the size and risks of their operations.
He stressed that the government did not intend to impose unnecessary restrictions on small businesses, adding that large-scale aggregation, processing and recycling facilities would be required to operate under appropriate licensing and safety standards.
The ministry said submissions from stakeholders would be considered before the regulations were finalised.
In his remarks, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said effective regulation of the scrap metal industry was essential to developing a competitive domestic steel sector.
He said the proposed framework would help curb the illegal trade in stolen metals, protect public and private infrastructure and ensure that the economic benefits of recycling contributed to national development.
“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 the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as a landmark development for the steel industry.
He said the engagement was an important step towards establishing an organised, regulated and economically viable scrap and waste industry.
The proposed regulations come as the Federal Government intensifies efforts to strengthen local manufacturing and develop Nigeria’s steel industry, with scrap metal recycling offering an opportunity to recover valuable materials, reduce waste and improve domestic industrial capacity.
