The Federal Government has moved to tighten regulations in Nigeria’s scrap metal industry, targeting the illegal trade in stolen metals and the vandalism of critical infrastructure, including electricity cables, railway components and manhole covers.

The government said it was developing a regulatory framework that would compel operators to obtain appropriate licences, verify the sources of scrap materials and maintain transaction records to prevent stolen metals from entering the recycling market.

The Minister of Steel Development, Shuaibu Audu, disclosed this in a statement issued by the ministry’s Head of Press and Public Relations, Maureen Tine-Iulun, on Tuesday.

Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, at a stakeholders’ engagement on the validation of the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, in Lagos, said the framework would establish an organised and transparent scrap metal value chain.

The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, are also expected to improve the supply of locally sourced raw materials to steel manufacturers, formalise the activities of informal scrap dealers and strengthen environmental and occupational safety standards.

The statement read, “The Federal Government has intensified efforts to sanitise Nigeria’s scrap metal industry, protect critical national infrastructure and strengthen the steel and metals manufacturing sector through the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.”

Speaking at the two-day engagement, the minister expressed concern that poorly regulated scrap metal activities had encouraged the theft and vandalism of public and private infrastructure, resulting in economic losses, disruption of essential services and increased maintenance costs.

He said the government was determined to address the problem without undermining the livelihoods of thousands of Nigerians who depend on 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.

The minister noted that scrap metal remained an important raw material for steel production, foundry operations and other manufacturing activities, adding that an organised recycling industry could reduce material wastage, create jobs and support Nigeria’s industrialisation drive.

However, he maintained that the sector’s economic potential could only be fully realised through effective regulation, lawful sourcing, safe handling and reliable supply arrangements.

According to him, the proposed regulations would introduce a structured system for licensing and supervising operators, regulating collection and aggregation centres, ensuring transaction traceability and improving monitoring and enforcement.

He said the framework would also strengthen environmental protection and occupational safety while discouraging the illicit acquisition and sale of stolen metallic materials.

Audu specifically identified the theft of electrical cables, railway components, manhole covers and other metallic installations as a major threat to national infrastructure.

He explained that the consequences went beyond the value of the stolen materials, as such activities disrupted public services, endangered lives and increased the financial burden of maintaining infrastructure.

The minister called for stronger identification and verification of scrap suppliers, proper documentation of transactions and improved collaboration between regulators, security agencies and law enforcement authorities.

On concerns raised by informal operators, Audu said the regulations would provide an opportunity for small-scale scrap collectors and traders to formalise their businesses through requirements that reflect the size and risks of their operations.

He stressed that the government did not intend to impose 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 examine the draft regulations and identify provisions requiring clarification, particularly those relating to implementation, operational requirements and compliance costs.

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

In his address, the Permanent Secretary of the ministry, Nura Abba Rimi, represented by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said a properly regulated scrap metal industry was essential to building a competitive domestic steel sector.

He said the proposed regulations would help curb the illegal trade in stolen metals, protect public and private infrastructure and ensure that the economic benefits of recycling contributed to national development.

“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,” Rimi stated.

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

He said the validation exercise went beyond reviewing a policy document, describing it as an important step towards establishing an organised, regulated and economically viable scrap and waste industry.

The proposed regulations come amid the government’s efforts to strengthen local manufacturing and develop Nigeria’s steel industry, with scrap metal recycling offering an opportunity to recover valuable materials while reducing waste.