Steel Devt: FG Moves To Regulate Scrap Metal Value Chain, Protect National Infrastructure.
Government through the Minister of Steel Development, Prince Shuaibu Abubakar Audu, gave the hint on Tuesday at the on-going Stakeholders’ Engagement for the Validation of the Draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026 in Lagos Speaking at the engagement themed “Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact,” the Minister explained that the proposed Regulations are designed to establish an organised, transparent and sustainable scrap metal value chain that supports Nigeria’s industrialization agenda.
Prince Audu noted that scrap metal remains a critical raw material for steel making, foundry operations and other metal manufacturing activities, with enormous potential to reduce material wastage, promote circular production, create employment and stimulate economic activities across collection, transportation, processing and recycling value chain.
He, however, observed that these benefits can only be fully realised through an effective Regulatory framework that ensures lawful sourcing, safe handling, transaction traceability and reliable supply of scrap materials to legitimate industrial users.
According to the minister, “poorly regulated scrap metal activities encourage the theft and vandalism of public and private infrastructure, unsafe dismantling practices, environmental degradation and economic losses, while creating uncertainty for legitimate investors and manufacturers. Audu stated that the proposed Regulations would provide a structured framework for licensing and supervising operators, regulating collection and aggregation facilities, ensuring transaction traceability, strengthening environmental and occupational safety compliance, preventing illicit trade and improving monitoring and enforcement across the sector. “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,” the Minister stated.
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