The Federal Government has appealed to scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria, NASWDEN, to suspend their ongoing industrial action and resume negotiations over grievances affecting operations across the steel value chain.
The Minister of Steel Development, Prince Shuaibu Audu, made the appeal through the ministry’s Permanent Secretary, Ambassador Nura Abba Rimi, in a statement issued on Thursday by the Head of Press and Public Relations, Tine-Iulun M.A.
The appeal followed an industrial action by NASWDEN members over what the association said were practices affecting the operations and economic interests of local scrap dealers.
Among the concerns raised by the association are alleged undervaluation of scrap metals, manipulation of weighing scales resulting in reduced weights, direct procurement of scrap metals by local and other steel-producing companies, as well as the importation of billets.
The Federal Government said it acknowledged the concerns raised by the dealers and was reviewing them in consultation with the National Steel Council.
The statement read, “The Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, has, through the Permanent Secretary of the Ministry, Ambassador Nura Abba Rimi, called on the leadership of the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend its ongoing industrial action in the interest of industrial harmony, mutual understanding and the overall stability and development of Nigeria’s steel sector.
“The Minister acknowledges the concerns raised by NASWDEN, which were formally presented to the Ministry through the National Steel Council. These concerns include alleged undervaluation of scrap metals, weight reductions arising from malpractices involving weighing scales, the involvement of local and other steel-producing companies in direct scrap metals trading, the importation of billets, and other practices perceived by the Association to be limiting the effective participation of local scrap dealers in the steel value chain.”
The ministry said the complaints deserved attention given the role of scrap dealers in providing raw materials to steel manufacturers and supporting activities throughout the domestic steel industry.
It added that it was working with the National Steel Council to formulate practical steps that would address the dealers’ concerns without adversely affecting steel manufacturers and other businesses in the sector.
“The Ministry recognises the seriousness and importance of these concerns and is currently giving them due consideration in consultation with the National Steel Council, with a view to developing practical, balanced and sustainable institutional measures to address the issues raised,” it stated.
Government opens mediation with scrap dealers
The Minister has directed the Permanent Secretary, working with the Office of the Executive Secretary of the National Steel Council, to invite NASWDEN leaders for further talks and mediation.
The proposed engagement will consider the association’s complaints and assess their potential impact on scrap dealers, steel manufacturers and other stakeholders operating within the industry.
“The Honourable Minister has directed the Permanent Secretary, in collaboration with the Office of the Executive Secretary of the National Steel Council, to invite the apex leadership of NASWDEN for further discussions and effective mediation on the issues raised by the Association, as well as their implications for steel-producing companies and other operators within the sector,” the statement said.
The ministry called on NASWDEN and steel manufacturers to refrain from steps that could deepen disruptions in the industry, urging all parties to resolve the dispute through dialogue and good-faith negotiations.
The government’s intervention comes amid efforts to expand domestic steel production and reduce the country’s reliance on imported steel products. The Federal Government has set a target of producing 10 million metric tonnes of steel annually by 2030.
A prolonged disagreement between scrap dealers and steel manufacturers could disrupt the supply of scrap metal, which serves as an important raw material for some steel producers, while also affecting businesses and workers involved in the scrap-metal trade.
FG pushes for return to negotiations
The Minister consequently urged the dealers to suspend the industrial action and return to negotiations while efforts to resolve the dispute continue.
“The Honourable Minister therefore calls on NASWDEN to sheathe its sword, suspend the ongoing industrial action and return to the negotiation table, while assuring the Association and all stakeholders of the Ministry’s readiness to facilitate constructive engagement towards resolving the issues raised,” the statement said.
Audu also appealed to stakeholders to support President Bola Tinubu’s efforts to reposition the steel industry under the Renewed Hope Agenda.
“The development of a strong and competitive domestic steel industry requires the collective commitment and cooperation of all stakeholders. No individual or group interest should undermine the broader national objective of building a viable steel industry capable of supporting Nigeria’s industrialisation and economic transformation,” he said.
The ministry said meeting the 2030 steel production target would depend on increased local value addition, greater investment, job creation and stronger cooperation among scrap dealers, steel manufacturers and other stakeholders.
It assured legitimate operators that it remained committed to providing a fair and stable environment for businesses in the sector while working towards a lasting resolution of the dispute.
