The Federal Government is moving to regulate Nigeria's scrap metal industry through a new licensing framework aimed at preventing the theft of critical infrastructure and the illegal trade in stolen metals. The Minister of Steel Development, Shuaibu Audu, said the government is developing a regulatory framework that would compel scrap metal operators to obtain appropriate licences, verify the sources of their materials and maintain transaction records. The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, were being validated at a stakeholders' engagement in Lagos, according to a statement from the ministry's Head of Press and Public Relations, Maureen Tine-Iulun.
The theft and vandalism of public and private infrastructure has become a significant problem in Nigeria's scrap metal sector. Audu expressed concern that poorly regulated scrap metal activities had encouraged the theft and vandalism of electrical cables, railway components, manhole covers and other metallic installations. He said these activities resulted in economic losses, disruption of essential services and increased maintenance costs. The proposed regulations would introduce a structured system for licensing and supervising operators, regulating collection and aggregation centres, ensuring transaction traceability and improving monitoring and enforcement.
The government said the framework would establish an organised and transparent scrap metal value chain while also improving the supply of locally sourced raw materials to steel manufacturers and formalising the activities of informal scrap dealers. The regulations are also expected to strengthen environmental and occupational safety standards. Audu noted that scrap metal remained an important raw material for steel production, foundry operations and other manufacturing activities, and that an organised recycling industry could reduce material wastage, create jobs and support Nigeria's industrialisation drive. However, he maintained that the sector's economic potential could only be fully realised through effective regulation, lawful sourcing, safe handling and reliable supply arrangements.
Addressing concerns from informal operators, Audu said the regulations would provide an opportunity for small-scale scrap collectors and traders to formalise their businesses through requirements that reflect the size and risks of their operations. He stressed that the government did not intend to impose unnecessary restrictions on small businesses but would ensure that large-scale aggregation, processing and recycling facilities operated under appropriate licensing and safety standards. The minister urged stakeholders to examine the draft regulations and identify provisions requiring clarification, particularly those relating to implementation, operational requirements and compliance costs.
The Permanent Secretary of the ministry, Nura Abba Rimi, said a properly regulated scrap metal industry was essential to building a competitive domestic steel sector. He stated that the proposed regulations 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. The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the engagement as a landmark development for the steel industry.