The Federal Government is set to tighten regulations in Nigeria’s scrap metal industry through the introduction of compulsory licensing for operators to curb metal theft and the vandalism of critical infrastructure across the country.
The proposed measures are also aimed at improving transparency in the scrap metal trade, strengthening local steel production and ensuring that materials entering the recycling market are sourced legitimately.
The Minister of Steel Development, Shuaibu Audu, disclosed this on Tuesday at a stakeholders’ engagement in Lagos on the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.
He said the proposed framework would require scrap metal operators to obtain appropriate licences, verify the sources of materials and maintain transaction records to prevent stolen metals from entering the recycling chain.
Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, identified the theft of electricity cables, railway components, manhole covers and other metallic installations as major threats to public infrastructure.
He, however, said the government would not introduce measures that would undermine the livelihoods of Nigerians engaged in legitimate scrap 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 added that the proposed regulations would establish a structured system for licensing operators, supervising collection and aggregation centres, tracking transactions and strengthening enforcement across the industry.
According to him, the framework would also introduce stronger environmental and occupational safety standards while creating opportunities for small-scale collectors and traders to formalise their businesses.
The minister urged stakeholders to review the draft regulations and make recommendations on implementation, operational requirements and compliance costs before the framework is finalised.
Similarly, the Permanent Secretary of the ministry, Nura Abba Rimi, said effective regulation of the sector was necessary to protect infrastructure and provide steel manufacturers with reliable supplies of locally sourced raw materials.
Rimi, who was represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said the proposed framework would create a transparent and sustainable operating environment for legitimate businesses and investors.
The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the validation exercise as an important step towards establishing an organised and economically viable scrap metal industry.
The proposed regulations form part of the Federal Government’s efforts to strengthen local manufacturing, promote recycling and increase domestic production in Nigeria’s steel industry.