Scrap dealers shut down operations nationwide over disputed prices, weighing practices

Scrap metal dealers across Nigeria have commenced a 15-day warning strike following a dispute with iron-smelting companies over the pricing and measurement of scrap materials.

The industrial action, declared by the National Association of Scrap and Waste Dealers Employers of Nigeria, began on Thursday, October 1, 2026, with the association directing its members nationwide to suspend the supply of scrap metals to steel-producing companies.

The association’s Deputy National President, Aminu Hassan Soja, announced the decision during a press conference in Kano on Thursday.

“We call this press conference to brief the pressmen about our strike. We call on our members nationwide to embark on a warning strike for 15 days, starting from today, Thursday, October 1, 2026,” he said.

Soja said the action was prompted by what the association described as unfair treatment by companies involved in iron smelting and the production of steel rods.

According to him, the dealers had become increasingly dissatisfied with alleged arbitrary price adjustments, disputed weighing methods and other practices that they claimed were causing significant financial losses.

He said the association would enforce a complete halt to the supply of scrap materials to the affected companies throughout the duration of the warning strike.

Soja alleged that some iron-smelting companies reduced the agreed value of scrap metals after dealers had already delivered their materials.

He said the practice had created substantial losses for scrap dealers, with the financial impact on individual consignments sometimes running into millions of naira.

“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.

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The association’s deputy national president also linked some of the pricing challenges to developments in the international market.

He said dealers had been informed that global market conditions and geopolitical tensions had affected demand and contributed to excess stock in some markets, making cheaper raw materials available for import.

However, he questioned why such developments should translate into losses for local scrap dealers without corresponding reductions in the prices of finished steel products.

“Why should such developments 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?” he queried.

Another major issue raised by the association was the method used by some steel companies to determine the weight of scrap supplied by dealers.

Soja alleged that dealers sometimes discovered significant discrepancies between the quantity delivered and the weight recorded at the companies’ facilities.

He cited instances where materials believed to constitute a full tonne were allegedly recorded at substantially lower weights after being weighed by the purchasing companies.

“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.

The association said the disputed weighing practices had further aggravated tensions between scrap dealers and steel manufacturers.

The scrap dealers also raised concerns about the quality and specifications of reinforcement bars produced by some steel manufacturers.

Soja alleged that some manufacturers altered the dimensions of iron rods, resulting in products being sold under specifications that, according to him, could be below the stated measurements.

He warned that any compromise in the specifications of reinforcement materials could have consequences for the construction industry, particularly in projects where the strength and dimensions of steel reinforcement are critical.

The association therefore appealed to the Federal Government to intervene in the dispute and facilitate discussions between scrap dealers and iron-smelting companies.

Soja said the dispute was not only affecting scrap dealers but also threatening the livelihoods of young Nigerians working in the sector.

“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 added.

The association maintained that the 15-day warning strike would continue as announced, pending intervention and resolution of the issues it raised with the steel manufacturers.

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