The Federal Government has appealed to scrap dealers across the country to suspend their ongoing industrial action, promising to engage them on concerns affecting their participation in Nigeria’s steel industry.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, made the appeal through the Permanent Secretary of the ministry, Ambassador Nura Abba Rimi on Thursday.
The government’s intervention followed grievances raised by the National Association of Scrap and Waste Dealers Employers of Nigeria over alleged practices it said were undermining the scrap-metal trade.
Among the concerns presented by NASWDEN are alleged undervaluation of scrap metals, manipulation of weighing scales resulting in reduced weights, and the involvement of steel-producing companies in direct scrap-metal purchases.
The association also raised concerns over the importation of billets and other practices it believes are restricting the participation of local scrap dealers in the steel value chain.
The Ministry of Steel Development said it recognised the importance of the complaints, noting that scrap dealers play a significant role in supplying raw materials to steel manufacturers.
It said the issues were currently being reviewed in consultation with the National Steel Council, with the aim of finding solutions that would protect the interests of scrap dealers without negatively affecting 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,” the ministry said.
To facilitate a resolution, the minister directed the Permanent Secretary, working with the Office of the Executive Secretary of the National Steel Council, to invite the leadership of NASWDEN for further discussions and mediation.
The ministry said the planned engagement would examine the association’s complaints and assess their implications for scrap dealers, steel producers and other businesses operating within the sector.
It also urged the affected parties to avoid actions capable of further disrupting the steel industry, stressing the need for dialogue and good-faith negotiations.
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A prolonged dispute, the ministry noted, could have wider implications for the domestic steel value chain because scrap metal remains an important source of raw materials for some steel manufacturers.
Audu consequently appealed to the scrap dealers to suspend the strike and return to the negotiating table while the government works towards addressing their concerns.
“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 added.
The minister also urged stakeholders to support the Federal Government’s efforts to reposition the steel sector under President Bola Tinubu’s Renewed Hope Agenda.
He said building a competitive domestic steel industry would require cooperation among scrap dealers, steel manufacturers and other 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,” Audu said.
The Federal Government has set a target of producing 10 million metric tonnes of steel annually by 2030, a goal that will require increased local production, investment, job creation and greater value addition within the sector.
The ministry assured legitimate operators in the industry that it remained committed to creating a stable and fair business environment while pursuing a lasting resolution to the dispute.