Scrap dealers threaten strike over price cuts

Scrap metal dealers across Nigeria have threatened to stop supplying iron and steel companies for two weeks from October 1 over what they described as unfair pricing practices and other challenges affecting their businesses.

The National Association of Scrap and Waste Dealers Employers of Nigeria said the planned industrial action would run until October 15, 2026, but could be extended indefinitely if the issues were not addressed.

The association disclosed this in a statement issued in Kano on Thursday by its Deputy National President, Aminu Hassan Soja, on behalf of the National President, Abdulfatah Ogunwale.

NASWDEN accused some iron and steel companies of repeatedly cutting the prices they pay for scrap metals without giving dealers sufficient notice.

According to the association, such sudden adjustments leave dealers who have already purchased and transported scrap at previously agreed prices with substantial losses.

Soja said a dealer could lose between N3m and N6m on a single truckload following an unexpected price reduction by a purchasing company.

“The incessant and deliberate reduction in the prices of scrap metals without adequate prior notice has placed considerable financial pressure on our members,” he said.

The dealers also raised concerns over deductions allegedly imposed by some companies under the description of “extra dust”. NASWDEN claimed the deductions, ranging from one to five per cent, further reduce the income of scrap dealers.

The association expressed concern over what it described as growing participation by foreign nationals in the sector, alleging that some had established dumpsites and collection centres in different parts of the country.

It called for stronger regulation to protect indigenous operators and ensure greater transparency across the scrap metal value chain.

NASWDEN also accused some steel companies of buying scrap from unregistered dealers and agents, warning that inadequate verification could facilitate the entry of stolen or vandalised materials into the steel industry.

“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.

The association directed its members to comply with the planned suspension of supplies but urged them to remain peaceful and avoid confrontations, violence or destruction of property.

It said the objective of the action was to secure a resolution through negotiation rather than disrupt public order.

“We are seeking a fair and mutually acceptable resolution of these grievances through dialogue and negotiation with the iron and steel companies,” NASWDEN said.

The association appealed to government agencies and other stakeholders in the steel sector to intervene before the planned shutdown takes effect, while urging its members to adhere to the directive from October 1.