FG plans scrap-metal licensing framework to curb infrastructure theft
The Federal Government is developing a proposed licensing framework for scrap-metal operators, including supplier checks and transaction records, according to a Ministry of Steel Development statement reported by PUNCH on Tuesday.
The ministry says the measures would help prevent stolen infrastructure from entering the recycling market.
Steel Development Minister Shuaibu Audu outlined the proposals during a stakeholder validation engagement in Lagos, where he was represented by a ministry director.
The framework would introduce closer oversight of collection centres and recycling facilities, alongside requirements for documenting where scrap materials come from.
Audu identified electricity cables, railway components and manhole covers among infrastructure targeted by thieves. He said the losses disrupt services and increase repair costs.
The minister said the government intended to protect lawful businesses and improve scrap supplies for domestic steel production. Requirements for smaller operators should reflect their scale and operational risks, he added.
Stakeholders were invited to examine implementation arrangements and compliance costs before finalisation.
The material reviewed does not establish when the proposed measures would take effect or specify licence fees and application procedures.