FG Moves to Enforce Licensing for Scrap Dealers, Targets Theft of Electricity Cables, Railway Materials

The Federal Government has intensified efforts to sanitise Nigeria’s scrap metal industry through a proposed regulatory framework that will make licensing compulsory for operators, strengthen monitoring of scrap transactions and tackle the growing theft of critical national infrastructure.

The initiative is aimed at curbing the illegal trade in stolen metallic materials, particularly electricity cables, railway components, manhole covers and other public infrastructure frequently vandalised for financial gain.

Under the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, scrap metal collectors, dealers and recycling operators will be required to obtain appropriate licences, verify the sources of materials purchased and maintain comprehensive records of their transactions.

The Minister of Steel Development, Prince Shuaibu Audu, disclosed this during a two-day stakeholders’ engagement organised in Lagos to review and validate the proposed regulations.

Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the proposed framework would establish a transparent, organised and accountable scrap metal value chain.

According to a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, the government is determined to address the challenges associated with the industry while protecting legitimate businesses and supporting the country’s industrial development.

The minister expressed concern that poorly regulated scrap metal activities had contributed significantly to the theft and vandalism of public and private infrastructure, leading to economic losses, disruption of essential services and increased maintenance costs.

He, however, clarified that the government’s intention was not to undermine the livelihoods of thousands of Nigerians engaged in 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 a critical raw material for steel production, foundry operations and other manufacturing activities, noting that an effectively organised recycling industry could reduce material wastage, generate employment and accelerate Nigeria’s industrialisation drive.

According to him, the economic benefits of the sector could only be fully realised through effective regulation, lawful sourcing, safe handling practices and dependable supply arrangements.

The proposed regulations will introduce a structured licensing and supervisory system for operators, establish guidelines for collection and aggregation centres, improve transaction traceability and strengthen monitoring and enforcement mechanisms.

The framework is also expected to improve environmental protection and occupational safety standards while discouraging the acquisition and commercialisation of stolen metallic materials.

Audu particularly identified the theft of electricity cables, railway components, manhole covers and other metallic installations as a serious threat to national infrastructure.

He explained that the consequences extended beyond the financial value of stolen materials, as the activities could disrupt essential public services, endanger human lives and impose additional financial burdens on government through repeated repairs and maintenance.

To address the problem, the minister called for stronger identification and verification of scrap suppliers, proper documentation of transactions and improved collaboration among regulatory authorities, security agencies and law enforcement organisations.

Addressing concerns from informal operators, Audu said the proposed regulations would create opportunities for small-scale collectors and traders to formalise their businesses through requirements tailored to the size and operational risks of their activities.

He maintained that the government was not interested in imposing 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 carefully examine the proposed regulations and make recommendations on areas requiring further clarification, particularly implementation procedures, operational requirements and compliance costs.

He assured participants that their submissions would be considered before the regulations were finalised, adding that the ministry would collaborate with relevant institutions to strengthen enforcement capacity, improve public awareness and enhance data collection across the industry.

Also speaking, the Permanent Secretary of the Ministry of Steel Development, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, described effective regulation of the scrap metal industry as essential to building a competitive domestic steel sector.

Rimi explained that the proposed framework would help eliminate the illegal trade in stolen metals, safeguard public and private infrastructure and ensure that the economic benefits of recycling contributed meaningfully to national development.

He stressed that the government’s objective was to establish a transparent, accountable and sustainable operating environment capable of supporting genuine entrepreneurs, attracting investment and providing local steel manufacturers with reliable supplies of raw materials.

“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,” he stated.

Meanwhile, the National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the stakeholders’ engagement as a landmark development for the country’s steel industry.

He said the validation exercise represented an important step towards establishing an organised, regulated and economically sustainable scrap and waste industry.

The proposed regulations come amid broader Federal Government efforts to strengthen local manufacturing, promote industrialisation and improve the competitiveness of Nigeria’s steel sector.

If effectively implemented, the framework is expected to promote responsible recycling practices, protect critical infrastructure, discourage the circulation of stolen metals and improve access to locally sourced raw materials for domestic manufacturers.

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