SCRAP DEALERS THREATEN NATIONWIDE SHUTDOWN OVER ALLEGED PRICE CUTS
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By; Sunmola Ganiyat
Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have threatened to suspend supplies to iron and steel companies nationwide over alleged irregularities in the sector.
The association said the planned industrial action would begin on October 1 and run until October 15, 2026, with the possibility of an indefinite extension if the issues are not resolved.
The directive was contained in a statement issued in Kano by the association’s Deputy National President, Aminu Hassan Soja, on behalf of its National President, Abdulfatah Ogunwale.
NASWDEN alleged that some iron and steel companies had repeatedly reduced the prices of scrap metals without giving dealers adequate notice, resulting in significant losses for those who had already purchased and transported the materials at higher prices.
Soja said dealers could lose between N3 million and N6 million on a single truckload when companies suddenly reduce their purchase prices.
The association also alleged that some companies deduct between one and five per cent from transactions under what it described as “extra dust,” adding that the practice had increased the financial burden on dealers.
NASWDEN further raised concerns about the growing involvement of foreign nationals in the scrap metal business, including the establishment of dumpsites and collection centres across the country.
The association called for stronger regulation of the industry, alleging that some iron companies purchase scrap from unregistered or uncertified dealers and agents.
According to NASWDEN, such practices could encourage the circulation of vandalised public and private property into the steel industry.
The association urged authorities to ensure that scrap materials supplied to steel companies are properly sourced and verified through legitimate channels.
Ogunwale directed members to remain peaceful and law-abiding during the planned action, warning them against confrontation, violence, destruction of property and other activities that could disrupt public order.
NASWDEN said it remained open to dialogue and negotiations with iron and steel companies to reach a fair and mutually acceptable resolution.
The association also appealed to relevant government agencies, industry stakeholders and members of the public to support efforts to resolve the dispute before the planned shutdown begins.
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