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Nigeria Proposes Scrap Metal Licensing Rules to Curb Infrastructure Theft
Nigeria is advancing proposed regulations to license scrap metal operators, verify material sources and combat infrastructure theft. The framework aims to strengthen domestic steel production while bringing informal scrap collection and trading into a more transparent, regulated market.
By Paul Ploumis | Published November 12, 2026
Key Points
- Proposed licensing: Nigeria's draft 2026 regulations would establish oversight of scrap collection, trading, aggregation and recycling businesses.
- Infrastructure protection: Supplier identification and material-source verification would help combat the trade in stolen cables, railway components and other public assets.
- Small business inclusion: The proposed framework seeks proportionate requirements for small-scale operators while strengthening standards for larger facilities.
- Industrial development: Authorities aim to improve legitimate scrap supplies for domestic steelmakers, foundries and metal manufacturers.
MONTREAL (Scrap Monster): Nigeria's Federal Ministry of Steel Development is advancing proposed regulations for the country's scrap metal industry, seeking to curb infrastructure theft, improve material traceability and secure reliable raw-material supplies for steelmakers and foundries.
The draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, were reviewed during a stakeholder validation meeting held November 9–10 in Lagos.
Steel Development Minister Prince Shuaibu Abubakar Audu, represented at the meeting by ministry official Ime Eprikpo, said the framework is intended to establish a more organized, transparent and sustainable scrap metal value chain.
Draft Rules Target Licensing and Scrap Traceability
The proposed regulations would establish licensing and supervision requirements for scrap metal operators, including collection, aggregation, processing and recycling facilities.
They would also strengthen transaction records, supplier identification, verification of material sources, environmental protection and occupational safety compliance.
Audu said inadequate oversight of scrap trading creates opportunities for stolen materials to enter legitimate recycling channels, while unsafe dismantling and poor handling practices can cause environmental damage and financial losses.
The minister emphasized that the objective is not to restrict legitimate commerce, but to provide greater clarity for lawful businesses while addressing stolen materials, unsafe practices and environmental harm.
Government Seeks to Protect Critical Infrastructure
The proposed framework also targets the theft and vandalism of metallic infrastructure, including electrical cables, railway components, manhole covers and other essential installations.
According to Audu, these activities cause damage beyond the value of the stolen metal, disrupting public services, creating safety risks and increasing infrastructure maintenance costs.
He called for stronger verification of suppliers, reliable transaction records and closer cooperation between scrap businesses, regulators and law enforcement agencies.
ScrapMonster Edge: Traceability Could Reshape Scrap Trading Practices
The proposed rules would place greater emphasis on documenting where scrap originates and who supplies it. Licensing, source verification and transaction records could become important operating requirements for businesses handling materials destined for Nigeria's steel and metals industries.
Industry takeaway: Scrap dealers, aggregators and processors should monitor the final licensing conditions, documentation requirements and compliance costs. The rules remain in draft form, and their practical impact will depend on the final provisions and enforcement arrangements.
Small-Scale Scrap Dealers Included in Formalization Plans
Audu acknowledged that thousands of Nigerians rely on scrap collection and trading for their livelihoods and said the regulatory approach should accommodate smaller operators.
The proposed framework would seek requirements proportionate to business size and operational risk, while larger aggregation, processing and recycling facilities would be expected to meet appropriate licensing and operating standards.
Scrap metal remains an important feedstock for Nigeria's steelmakers, foundries and other manufacturers. Better-organized collection and recycling could help reduce material losses, support employment and improve access to industrial raw materials.
Industry Stakeholders Review Implementation Challenges
The Lagos engagement, themed "Sustainable Scrap Metal Management through Effective Metallurgical Regulation: From Policy to Real Impact," brought together industry operators, government institutions, environmental and security agencies and professional organizations.
Audu encouraged participants to identify provisions requiring clarification and raise practical concerns about implementation and compliance.
Ogbu Luke Uchechukwu, National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, welcomed the consultation as an important step toward a more organized and economically viable scrap industry.
The draft remains subject to further consideration following the stakeholder review. The final requirements and implementation timetable have not yet been established in the reporting.
Courtesy: www.arise.tv
