The Federal Government has appealed to scrap metal dealers under the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend their ongoing industrial action and return to the negotiation table over grievances threatening activities across the steel value chain.
The Minister of Steel Development, Prince Shuaibu Audu, made the appeal through the Permanent Secretary of the ministry, Ambassador Nura Abba Rimi, in a statement issued by the Head of Press and Public Relations, Tine-Iulun M.A., on Thursday.
The development followed an industrial action embarked upon by members of NASWDEN over what the association described as practices undermining the operations and economic interests of local scrap dealers.
The association’s complaints include alleged undervaluation of scrap metals, manipulation of weighing scales leading to weight reductions, direct purchase of scrap metals by local and other steel-producing companies, and the importation of billets.
The Federal Government said it recognised the concerns raised by the scrap dealers and was considering them in consultation with the National Steel Council.
The statement read, “The Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, has, through the Permanent Secretary of the Ministry, Ambassador Nura Abba Rimi, called on the leadership of the National Association of Scrap and Waste Dealers Employers of Nigeria to suspend its ongoing industrial action in the interest of industrial harmony, mutual understanding and the overall stability and development of Nigeria’s steel sector.
“The Minister acknowledges the concerns raised by NASWDEN, which were formally presented to the Ministry through the National Steel Council. These concerns include alleged undervaluation of scrap metals, weight reductions arising from malpractices involving weighing scales, the involvement of local and other steel-producing companies in direct scrap metals trading, the importation of billets, and other practices perceived by the Association to be limiting the effective participation of local scrap dealers in the steel value chain.”
The ministry said the complaints were serious because of the role of scrap dealers in supplying raw materials to steel-producing companies and supporting activities across the domestic steel value chain.
It said it was working with the National Steel Council to develop practical measures that would address the grievances without undermining steel manufacturers or other businesses operating in the sector.
“The Ministry recognises the seriousness and importance of these concerns and is currently giving them due consideration in consultation with the National Steel Council, with a view to developing practical, balanced and sustainable institutional measures to address the issues raised,” it stated.
The Minister has consequently directed the Permanent Secretary, in collaboration with the Office of the Executive Secretary of the National Steel Council, to invite NASWDEN’s leadership for further discussions and mediation.
The engagement is expected to examine the association’s grievances and their implications for scrap dealers, steel manufacturers and other operators.
“The Honourable Minister has directed the Permanent Secretary, in collaboration with the Office of the Executive Secretary of the National Steel Council, to invite the apex leadership of NASWDEN for further discussions and effective mediation on the issues raised by the Association, as well as their implications for steel-producing companies and other operators within the sector,” the statement said.
The ministry urged NASWDEN and steel producers to avoid actions that could further disrupt the sector, stressing that all parties must approach the dispute through dialogue and good-faith negotiations.
The Federal Government’s intervention comes as it seeks to expand domestic steel production and reduce Nigeria’s dependence on imported steel products. The government has set a target of producing 10 million metric tonnes of steel annually by 2030.
A prolonged dispute between scrap dealers and steel producers could affect the supply of scrap, an important source of raw material for some steel manufacturers, while also disrupting businesses and workers operating within the scrap-metal trade.
The Minister therefore urged the dealers to sheathe their swords and suspend the industrial action while negotiations continue.
“The Honourable Minister therefore calls on NASWDEN to sheathe its sword, suspend the ongoing industrial action and return to the negotiation table, while assuring the Association and all stakeholders of the Ministry’s readiness to facilitate constructive engagement towards resolving the issues raised,” the statement said.
Audu also called on stakeholders to support President Bola Tinubu’s efforts to reposition the steel industry under the Renewed Hope Agenda.
“The development of a strong and competitive domestic steel industry requires the collective commitment and cooperation of all stakeholders. No individual or group interest should undermine the broader national objective of building a viable steel industry capable of supporting Nigeria’s industrialisation and economic transformation,” he said.
The ministry said achieving the 2030 steel production target would require greater local value addition, increased investment, job creation and cooperation among scrap dealers, steel manufacturers and other stakeholders.
It assured legitimate operators that it remained committed to creating a fair and stable operating environment for the industry while pursuing a lasting resolution to the current dispute. Punch
Leave a Reply