The Federal Government is set to introduce stricter controls for Nigeria’s scrap metal industry as part of efforts to curb the sale of stolen metals and protect critical infrastructure from vandalism.

The proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026, will require operators to obtain relevant licences, verify the sources of materials and keep records of transactions to make it harder for stolen metals to enter the recycling chain.

The Minister of Steel Development, Shuaibu Audu, disclosed this on Tuesday during a two-day stakeholder engagement on the validation of the proposed regulations in Lagos.

Audu, who was represented by the Director of the Metallurgical Raw Material Development and Investment Promotion Department, Ime Eprikpo, said the framework was designed to bring greater order and accountability to the scrap metal value chain.

He said the government’s move was driven by concerns over the theft of metallic components from public and private infrastructure, including electricity cables, railway equipment and manhole covers.

According to him, the vandalism of such infrastructure has resulted in service disruptions, economic losses, safety risks and higher maintenance costs.

Audu said the government would, however, pursue regulation without undermining the livelihoods of Nigerians involved in legitimate scrap collection and trading.

He said the proposed framework would create clearer operating conditions for lawful businesses while imposing appropriate measures against the handling of stolen materials, unsafe practices and activities that damage the environment.

The regulations are also expected to improve the supply of locally sourced raw materials to steel manufacturers, formalise informal operators and strengthen environmental and occupational safety standards.

Under the proposed system, the government plans to regulate collection and aggregation centres, improve the tracking of transactions and strengthen monitoring and enforcement across the industry.

Audu said effective identification and verification of scrap suppliers would be critical to preventing illegally obtained metals from being introduced into the legitimate market.

He called for stronger cooperation among regulators, security agencies and law enforcement authorities to tackle the theft and illegal movement of metallic materials.

The minister also said the government would consider the circumstances of small-scale collectors and traders, noting that regulation should not create unnecessary barriers for businesses operating at a lower scale.

He said larger aggregation, processing and recycling facilities would, however, be expected to meet appropriate licensing, environmental and safety requirements.

Audu urged stakeholders at the validation exercise to scrutinise the draft regulations and raise concerns over implementation, operational requirements and potential compliance costs before the document is finalised.

He added that stakeholder recommendations would be reviewed as the ministry works to improve enforcement capacity, public awareness and data collection within the sector.

The Permanent Secretary of the Ministry of Steel Development, Nura Abba Rimi, represented at the event by the Director of the Metallurgical Inspectorate and Environmental Protection Department, Christopher Wanje, said effective regulation of the sector would support the development of Nigeria’s domestic steel industry.

Rimi said the proposed framework would help protect public and private infrastructure while ensuring that scrap recycling contributes more effectively to industrial development.

He stressed that the objective was to create a transparent and sustainable operating environment for legitimate businesses and investors while ensuring that steel manufacturers had dependable access to raw materials.

The National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, Ogbu Luke Uchechukwu, described the stakeholder engagement as a significant step towards organising the scrap and waste industry.

He said the exercise would help establish a more structured and economically viable sector while supporting the broader development of Nigeria’s steel industry.

The proposed regulations form part of the Federal Government’s wider efforts to strengthen local manufacturing, increase domestic value addition and develop a more reliable supply of raw materials for the steel sector.