Scrap Dealers Set October 1 Strike Over Sudden Price Reductions

The National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) has directed its members nationwide to suspend the supply of scrap metals to iron and steel companies from October 1 over alleged sudden and unannounced price reductions.

The association said the industrial action, which would initially run until October 15, could become indefinite if no satisfactory agreement was reached with the affected companies.

This was contained in a statement issued on Friday and signed by NASWDEN National President, Abdulfatah Ogunwale, and its Public Relations Officer, Stephen Azubukwe.

The association said the planned action followed what it described as persistent irregularities and grievances affecting scrap-metal dealers and their businesses.

According to NASWDEN, some iron and steel companies frequently reduce scrap-metal prices without adequate notice, leaving dealers who had already purchased and transported materials at previously agreed prices with huge losses.

The association’s Deputy National President, Aminu Hassan Soja, alleged that dealers could lose between N3 million and N6 million on a single truckload following sudden price reductions.

NASWDEN also alleged that some companies impose deductions ranging from one to five per cent under what they describe as “extra dust,” which it said further increases the financial burden on dealers.

The association expressed concern over the alleged growing involvement of foreigners in the scrap-metal business, claiming that some had established dumpsites and collection centres across the country.

It also alleged that some iron and steel companies purchase scrap from unregistered dealers and agents, warning that such practices could encourage the circulation of vandalised public and private property.

NASWDEN called for stricter regulation and verification of dealers, agents and scrap-collection centres to ensure that materials supplied to the steel industry were sourced through legitimate channels.

While announcing the industrial action, Ogunwale urged members to remain peaceful and law-abiding, directing them to avoid violence, confrontation, destruction of property and other actions capable of disrupting public order.

The association said its objective was to secure a fair and mutually acceptable resolution through dialogue and negotiation with the affected iron and steel companies.

It appealed to relevant government agencies and stakeholders in the iron and steel sector to intervene and help resolve the grievances.