FG urges scrap dealers to suspend strike, promises steel sector reform

The Federal Government has urged scrap dealers to suspend their ongoing strike and return to negotiations to resolve issues threatening activities in the steel value chain. The appeal comes from the Minister of Steel Development, Prince Shuaibu Audu, who made the request through the Permanent Secretary of the ministry, Ambassador Nura Abba Rimi.

The dispute stems from complaints raised by the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) regarding practices they claim undermine local scrap dealers' operations and economic interests. These concerns include alleged undervaluation of scrap metals, manipulation of weighing scales, direct purchase of scrap metals by steel companies, and the importation of billets.

The government recognized these grievances and is considering them in consultation with the National Steel Council. The ministry is working with the National Steel Council to develop balanced and sustainable measures to address the concerns without negatively impacting steel manufacturers or other businesses. The ministry urged all stakeholders to avoid actions that could further disrupt the sector and emphasized the importance of dialogue and good-faith negotiations to resolve the dispute.

The government seeks to expand domestic steel production and reduce dependence on imported steel products, with a target of producing 10 million metric tonnes annually by 2030. A prolonged industrial action could disrupt the supply of scrap, an essential raw material for steel manufacturers, and impact the scrap-metal trade.