Reported by Ariajegbe Sylvia Esezobor
The National Association of Scrap and Waste Dealers Employers of Nigeria has commenced a 15-day nationwide warning strike, halting the supply of scrap metals to iron-smelting companies across the country in a dispute over pricing, weighing practices and what the association describes as unfair competition from foreign-owned steel firms. The strike, which began on Thursday, October 1, 2026, is scheduled to run until October 15, with the association warning that it could become indefinite if no satisfactory agreement is reached within the warning period.
Announcing the action at a press conference in Kano, the Deputy National President of NASWDEN, Aminu Hassan Soja, said the association had directed its members nationwide to suspend all supplies to companies producing iron rods and other steel products from ferrous and non-ferrous scrap. “We call on our members nationwide to embark on a warning strike for 15 days, starting from today, Thursday, October 1, 2026,” Soja said. He said trucks conveying scrap metals had been parked in several locations as the strike took effect, and stressed that the industrial action was peaceful, with members instructed to avoid violence, confrontation or any activity capable of disrupting public order.
At the heart of the dispute are allegations of arbitrary price reductions imposed by steel companies without adequate notice to dealers. Soja said the reductions had caused substantial financial losses for dealers who had already purchased and transported large quantities of scrap based on previously agreed prices. “They depreciate our price on a daily basis, causing a lot of losses to our customers. In one truck, we lose about three to four million naira daily,” he said. The association’s National Publicity Secretary, Stephen Azubukwe, said dealers could lose between three million and six million naira on a single truckload following sudden price reductions. Soja also cited developments in the international market and geopolitical tensions, which he said had affected demand and created excess stocks in some markets, making cheaper materials available for import. He questioned why such developments should be used to impose losses on local scrap dealers while reductions in raw material costs were not similarly reflected in the prices of finished steel products.
The association raised a second major grievance concerning the weighing of scrap supplied to steel companies. Soja alleged that discrepancies sometimes emerged between the quantity delivered by dealers and the weight eventually used to determine payment. He cited instances in which dealers allegedly supplied a full tonne but were paid for considerably less after the material was weighed at the companies’ facilities. “When we sell 1,000kg to them, that is 1,000kg that makes one ton. When you scale it, you find out that the kilogramme on the weight is 600kg or 700kg. The highest you can get is 750kg,” he alleged. NASWDEN also accused some companies of deducting between one and five per cent from the weight of scrap supplied under what it described as an “extra dust” arrangement, describing the practice as an additional financial burden on its members.
A third area of concern relates to the quality and specifications of reinforcement bars produced by some steel manufacturers. Soja alleged that some manufacturers tampered with the dimensions of iron rods, claiming that products marketed under particular measurements could fall below the stated specifications. He expressed concern that such practices, if allowed to continue, could have serious implications for the construction sector, particularly where reinforcement materials were involved. The association also protested the increasing involvement of foreigners in the scrap-metal business, alleging that some foreign-owned companies had established dumpsites and scrap-collection centres across the country, driving indigenous dealers out of business. Soja called on the Federal Government to intervene, arguing that foreign steel companies should focus on manufacturing rather than directly competing with local scrap dealers for collection and supply. “These companies are sending a lot of youths out of jobs. You can see, apart from agriculture, we are the highest employers of labour. We have millions of youths in the scrap industry,” he said.
The association disclosed that the Federal Government had already initiated discussions with it through the Executive Secretary of the National Steel Council, Ambassador Abdelkader Fadi. Soja said the association had presented its grievances in writing and was awaiting further action from the relevant ministry. He said the strike would be suspended if the government and the companies addressed their grievances, but warned that the action could become indefinite if no reconciliation was reached within the 15-day warning period. The association also called for the formalisation of the scrap sector and the provision of intervention funds to scrap traders so that indigenous Nigerians could establish companies similar to those being established by foreign investors.
The strike has generated internal dissent within the association. A faction led by Ogbu Luke Uchechukwu issued a statement disowning the strike notice, describing those behind it as impostors and urging scrap dealers across the country to disregard the directive and continue their legitimate businesses. The faction said the leadership of the union had made moves to engage relevant government agencies and warned that security agencies would be approached where necessary to prevent any unlawful enforcement of the strike notice. The division within NASWDEN adds a layer of uncertainty to the industrial action, with the possibility that compliance may be uneven across the country.
The dispute comes amid broader concerns about the state of Nigeria’s steel sector and the informal economy that supplies it. Scrap dealers occupy a critical position in the steel value chain, collecting and processing ferrous and non-ferrous materials that are melted down and re-formed into reinforcement bars and other products used in construction. The industry employs millions of Nigerians, particularly young people, and the strike threatens to disrupt supplies to steel manufacturers, with potential knock-on effects for construction projects and the broader economy. The Federal Government’s intervention through the National Steel Council will be critical in determining whether the dispute is resolved through dialogue or escalates into a prolonged shutdown. For now, scrap dealers have made their position clear: they will not resume supplies until their grievances are addressed, and they are prepared to extend the strike indefinitely if their demands are ignored.
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