The Federal Government has appealed to members of the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend their industrial action and resume discussions over issues affecting the scrap metal and steel industries.
The Minister of Steel Development, Prince Shuaibu Audu, made the appeal through the ministry’s Permanent Secretary, Ambassador Nura Abba Rimi, in a statement issued on Thursday by the Head of Press and Public Relations, Tine-Iulun M.A.
The development followed a strike by NASWDEN members over concerns they said were hurting the operations and businesses of scrap dealers.
Among the issues raised by the association are alleged undervaluation of scrap metals, manipulation of weighing scales, direct purchase of scrap by steel-producing companies and the importation of billets.
The Federal Government said it had taken note of the concerns and was reviewing them in conjunction with the National Steel Council.
The statement read, “The Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, has, through the Permanent Secretary of the Ministry, Ambassador Nura Abba Rimi, called on the leadership of the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend its ongoing industrial action in the interest of industrial harmony, mutual understanding and the overall stability and development of Nigeria’s steel sector.
“The Minister acknowledges the concerns raised by NASWDEN, which were formally presented to the Ministry through the National Steel Council. These concerns include alleged undervaluation of scrap metals, weight reductions arising from malpractices involving weighing scales, the involvement of local and other steel-producing companies in direct scrap metals trading, the importation of billets, and other practices perceived by the Association to be limiting the effective participation of local scrap dealers in the steel value chain.”
The ministry said resolving the dispute was important because scrap dealers play a key role in supplying raw materials to steel manufacturers and supporting other activities within the domestic steel industry.
It added that discussions with the National Steel Council were underway to develop measures that would address the dealers’ complaints while protecting the interests of steel manufacturers and other operators.
“The Ministry recognises the seriousness and importance of these concerns and is currently giving them due consideration in consultation with the National Steel Council, with a view to developing practical, balanced and sustainable institutional measures to address the issues raised,” it stated.
Audu subsequently directed the Permanent Secretary, alongside the Office of the Executive Secretary of the National Steel Council, to invite NASWDEN leaders for further talks and mediation.
The ministry said the meeting would examine the complaints and their potential impact on scrap dealers, steel companies and other businesses in the sector.
“The Honourable Minister has directed the Permanent Secretary, in collaboration with the Office of the Executive Secretary of the National Steel Council, to invite the apex leadership of NASWDEN for further discussions and effective mediation on the issues raised by the Association, as well as their implications for steel-producing companies and other operators within the sector,” the statement said.
The government also appealed to both scrap dealers and steel manufacturers to avoid measures that could worsen the situation, urging them to resolve their differences through dialogue.
Nigeria is seeking to increase domestic steel production and reduce its reliance on imported steel products, with the Federal Government targeting an annual production capacity of 10 million metric tonnes by 2030.
The ministry noted that a prolonged disagreement could disrupt the supply of scrap metals, which serve as raw materials for some steel producers, while affecting businesses and workers involved in the trade.
The minister therefore appealed to the dealers to suspend the strike while discussions continue.
“The Honourable Minister therefore calls on NASWDEN to sheathe its sword, suspend the ongoing industrial action and return to the negotiation table, while assuring the Association and all stakeholders of the Ministry’s readiness to facilitate constructive engagement towards resolving the issues raised,” the statement said.
Audu also urged stakeholders to back President Bola Tinubu’s efforts to reposition the steel industry under the Renewed Hope Agenda.
“The development of a strong and competitive domestic steel industry requires the collective commitment and cooperation of all stakeholders. No individual or group interest should undermine the broader national objective of building a viable steel industry capable of supporting Nigeria’s industrialisation and economic transformation,” he said.
The ministry said meeting the 2030 production target would depend on stronger local value addition, fresh investment, job creation and cooperation among scrap dealers, steel manufacturers and other industry players.
It assured legitimate operators of its commitment to providing a stable and fair environment while working towards a lasting solution to the dispute.
