The Ministry of Steel Development has called on the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN) to suspend its ongoing industrial action and return to negotiations over concerns affecting scrap metal dealers and other operators in the steel industry.
The ministry said the Minister of Steel Development, Prince Shuaibu Abubakar Audu, made the call through the Permanent Secretary, Ambassador Nura Abba Rimi, in the interest of industrial harmony and the stability of the steel sector.
In a statement issued on Wednesday by the Head of Press and Public Relations, Tine-Iulun M.A., the ministry said it acknowledged concerns formally presented by NASWDEN through the National Steel Council.
According to the ministry, the association’s concerns include alleged undervaluation of scrap metals, weight reductions resulting from alleged malpractices involving weighing scales, and the involvement of local and other steel-producing companies in direct scrap metal trading.
The association also raised concerns over the importation of billets and other practices that it believes are limiting the effective participation of local scrap dealers in the steel value chain, the ministry said.
The ministry said it was considering the issues in consultation with the National Steel Council, with a view to developing practical and sustainable measures to address the concerns.
The 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 mediation, the statement said.
The ministry said the discussions would also examine the implications of the issues raised by NASWDEN for steel-producing companies and other operators in the sector.
It urged NASWDEN and other stakeholders, particularly steel-producing companies, to cooperate with the process and uphold their respective obligations.
“All parties are expected to embrace dialogue, good faith, and responsible engagements in the resolution of these issues affecting the sector,” the ministry said.
The ministry also called on stakeholders to support the federal government’s efforts to develop the domestic steel industry, saying a competitive steel sector would require cooperation among all operators.
According to the ministry, the Federal Government is targeting annual steel production of 10 million metric tonnes by 2030, alongside increased local value addition, employment generation and reduced dependence on imported steel products.
It said achieving the target required the collective commitment of stakeholders and cautioned that individual or sectional interests should not undermine the broader objective of developing the domestic steel industry.
The minister consequently appealed to NASWDEN to “sheathe its sword,” suspend the industrial action and return to the negotiation table.
The ministry assured the association and other stakeholders of its readiness to facilitate constructive engagement towards resolving the issues raised.
It said it remained committed to creating what it described as a fair, stable and conducive operating environment for legitimate stakeholders in the steel sector.
