Scrap Dealers Shut Down Supply: 15-Day Warning Strike Hits Steel Companies

Nigerian scrap dealers have had enough. The National Association of Scrap and Waste Dealers Employers of Nigeria has fired the first shot, kicking off a 15-day nationwide warning strike that could shake the steel industry to its core. The battle lines are drawn over pricing disputes and shady weighing tactics allegedly used by iron-smelting companies.

Speaking at a press conference in Kano on Thursday, the association's Deputy National President, Aminu Hassan Soja, laid it all out. The message was clear: no more scrap supplies to any steel company in the country until these unfair practices stop.

Why are scrap dealers striking?

The heart of this fight is money. Dealers say iron-smelting companies that produce steel rods are playing dirty games. They claim companies arbitrarily slash the value of scrap after delivery, leaving dealers counting massive losses. We're not talking small change here.

Soja put the numbers on the table: In one truck, we lose about three to four million naira daily. That's the kind of hit that forces hardworking Nigerians out of business.

Weighing scandals: The 1,000kg that becomes 600kg

Here's where it gets really frustrating. Dealers say they deliver a full tonne of scrap, but when the steel companies weigh it, the numbers mysteriously shrink.

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, Soja alleged.

Imagine selling a full load and getting paid for barely two-thirds of it. That's the reality these dealers say they face daily.

Steel quality concerns: A danger to construction?

The association isn't just fighting for fair pay. They're also raising red flags about the quality of reinforcement bars coming out of some steel plants. Soja alleged that some manufacturers are tampering with the dimensions of iron rods, selling products that fall below stated specifications.

If that's true, the implications for Nigeria's construction sector are serious. Substandard reinforcement materials could compromise buildings and infrastructure projects across the country.

What about the international market excuse?

Soja said the steel companies have been blaming global market conditions and geopolitical tensions for their pricing decisions. They claim cheaper imported materials are flooding in, creating excess stock.

But the dealers aren't buying it. Soja asked the question on everyone's mind: 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?

In other words, if your costs go down, why should we suffer while your prices stay high?

Call for government intervention

This isn't just about business. It's about livelihoods. Soja made it clear that the scrap industry is a major employer, especially for young Nigerians.

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 is now calling on the Federal Government to step in and settle this dispute before it spirals further. With millions of young Nigerians depending on this industry, the stakes couldn't be higher.

For 15 days, the scrap supply to steel companies across Nigeria will be at a standstill. The question now is: will the government and steel companies listen before the damage spreads?