Scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria have announced plans to suspend supplies to iron and steel companies nationwide from October 1 over alleged irregularities in the industry.
The association said the industrial action would initially run for two weeks, ending October 15, but could continue indefinitely if its grievances are not resolved.
Dealers Protest Sudden Price Cuts
NASWDEN said one of its major concerns was the alleged sudden reduction of scrap metal prices by some iron and steel companies without adequate notice.
According to the association, dealers who had already purchased and transported scrap based on previously agreed prices could lose between ₦3 million and ₦6 million on a single truckload when prices are unexpectedly reduced.
The dealers also complained about alleged deductions of between one and five per cent from some transactions under what they described as “extra dust”.
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Association Demands Stronger Regulation
NASWDEN also raised concerns over the alleged increasing involvement of foreign operators in the scrap-metal business, claiming that some had established dumpsites and collection centres across the country.
The association further alleged that some iron and steel companies buy scrap from unregistered or uncertified dealers and agents.
It warned that such practices could facilitate the circulation of vandalised public and private property into the scrap-metal market.
The association consequently called for stronger regulation and verification of scrap dealers, agents and collection centres to ensure that scrap materials entering the steel industry are obtained through legitimate sources.
Strike Could Continue Indefinitely
NASWDEN said the planned action would involve suspending the supply of scrap metals and other raw materials to iron-smelting companies producing iron rods and other steel products.
The association said the strike would continue beyond October 15 if no satisfactory Memorandum of Understanding is reached with the affected iron and steel companies.
Despite the planned industrial action, NASWDEN urged its members to remain peaceful and law-abiding, warning against violence, confrontation, destruction of property or any conduct capable of disrupting public order.
The association said it remained open to dialogue with stakeholders and appealed to relevant government agencies and players in the iron and steel sector to help resolve the dispute.
