Steel Ministry Wades Into Producers, Dealers Dispute Over Scrap Metals

The Ministry of Steel Development has taken steps to resolve the dispute between scrap metal dealers and steel-producing companies over alleged practices that the dealers say are undermining their participation in the sub-sector’s value chain.

The ministry said the concerns raised by the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) included alleged undervaluation of scrap metals, manipulation of weighing scales, direct purchase of scrap by steel-producing companies and the importation of billets.

The association’s concerns were formally presented to the ministry through the National Steel Council, according to a statement issued on Wednesday by the ministry’s head of Press and Public Relations, Tine-Iulun M.A.

The ministry said it recognised the importance of the issues and was considering them in consultation with the National Steel Council with a view to developing measures to address the concerns.

The development comes amid an ongoing industrial action by NASWDEN over issues affecting scrap dealers in the steel sector.

Meanwhile the minister of Steel Development, Prince Shuaibu Abubakar Audu, has directed the Permanent Secretary, Ambassador Nura Abba Rimi, to work with the Office of the Executive Secretary of the National Steel Council to invite NASWDEN’s national leadership for further discussions and mediation.

The ministry said the proposed engagement would consider not only the concerns raised by the association but also their implications for steel-producing companies and other operators in the sector.

It urged the association and steel companies to cooperate with the mediation process and resolve their differences through dialogue.

The ministry also appealed to NASWDEN to suspend its industrial action and return to negotiations while the discussions are ongoing.

According to the ministry, NASWDEN has complained about what it described as the undervaluation of scrap metals and reductions in recorded weights arising from alleged malpractices involving weighing scales.

The association also objected to the involvement of local and other steel-producing companies in direct scrap metal trading, as well as the importation of billets.

The ministry said NASWDEN believed such practices were limiting the effective participation of local scrap dealers in the steel value chain.

The ministry did not pronounce on the allegations but said they were being given due consideration as part of the consultation with the National Steel Council.

It urged all stakeholders to uphold their respective obligations and approach the process in good faith.

The ministry said resolving the dispute was important to the broader objective of developing a viable domestic steel industry.

It said the Federal Government was targeting annual steel production of 10 million metric tonnes by 2030, while seeking increased local value addition, employment opportunities and reduced dependence on imported steel products.

The ministry maintained that achieving the target would require cooperation among scrap dealers, steel producers and other stakeholders across the value chain.

It therefore called on NASWDEN to suspend the industrial action and “return to the negotiation table”, assuring the association and other stakeholders of its readiness to facilitate discussions aimed at resolving the outstanding issues.

The ministry said it remained committed to a “fair, stable and conducive” operating environment for legitimate stakeholders in the steel industry.