FG Moves to License Scrap Dealers to Curb Cable, Manhole Cover Theft

• The FG’s proposed scrap metal rules would require licences, source verification and transaction records to curb the trade in stolen cables, railway parts and manhole covers.

The Federal Government is developing new regulations for Nigeria’s scrap metal industry to curb the sale of stolen materials and protect electricity cables, railway components, manhole covers and other critical infrastructure.

Under the proposed framework, operators would be required to obtain appropriate licences, verify where their materials come from and maintain transaction records to help prevent stolen metals from entering the recycling market.

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

The proposals were discussed during a two-day stakeholders’ engagement in Lagos to validate the draft Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.

Audu was represented at the event by Ime Eprikpo, Director of the Metallurgical Raw Material Development and Investment Promotion Department.

Government seeks to disrupt market for stolen metals

The minister said poorly regulated scrap metal activities had encouraged the theft and vandalism of public and private infrastructure, causing economic losses and disrupting essential services.

He identified electrical cables, railway components and manhole covers among the installations frequently targeted.

According to Audu, the damage extends beyond the value of the stolen metal. It can interrupt public services, endanger lives and increase the cost of repairing and maintaining infrastructure.

He called for stronger identification and verification of suppliers, proper transaction documentation and closer cooperation between regulators, security agencies and law enforcement authorities.

What the proposed rules would cover

The draft framework is intended to introduce a structured system for licensing and supervising scrap metal operators.

It would also regulate collection and aggregation centres, improve the traceability of transactions and strengthen monitoring and enforcement.

Other priorities include environmental protection, safe handling of materials and occupational safety at processing and recycling facilities.

“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,” the statement read.

Small-scale dealers to be considered

Audu said the government recognised that thousands of Nigerians depended on scrap collection and trading for their livelihoods.

He explained that the proposed regulations would allow small-scale collectors and traders to formalise their businesses through requirements reflecting the size and risks of their operations.

“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.

He added that large-scale aggregation, processing and recycling facilities would be expected to meet appropriate licensing and safety standards.

Steel manufacturers could benefit from reliable supplies

The minister described scrap metal as an important raw material for steel production, foundry operations and other manufacturing activities.

He said a more organised recycling industry could reduce waste, create employment and improve the supply of locally sourced materials to manufacturers.

However, he maintained that these benefits depended on lawful sourcing, safe handling and reliable supply arrangements.

Permanent Secretary Nura Abba Rimi also said effective regulation was essential to building a competitive domestic steel industry.

Represented by Christopher Wanje, Director of the Metallurgical Inspectorate and Environmental Protection Department, Rimi said the framework would help protect infrastructure and ensure that 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.

Stakeholder feedback to shape final regulations

Audu urged participants to examine the draft and identify provisions requiring clarification, particularly those concerning implementation, operating requirements and compliance costs.

He said their submissions would be considered before the regulations were finalised.

The ministry would also work with relevant institutions to strengthen enforcement capacity, improve public awareness and develop better industry data.

National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, welcomed the engagement, describing it as a significant step towards an organised and economically viable scrap and waste industry.

The regulations remain proposals undergoing stakeholder review.