Local scrap processors have called on the federal government to help curb the activities of metal scrap smugglers to save the local steel factories from crippling scarcity of raw materials for operation.

Though all forms of metal scraps litter the country, scrap users are beginning to complain of the scarcity of the material due to the activities of smugglers who have resorted to taking the raw material out to neighbouring countries for export to Asian countries, a feat which the industrialist says may bring about unemployment and thereby affect the progress of a nation still working hard to boost its industrial economy.

Tayo Akinosun, a metal recycler, said there is currently a scarcity in metal scrap because most of the quantity scavenged is mopped up from the market by smugglers who export it through Idi iroko in Ogun State to Benin Republic where it is then taken to India and China.

“There is a need to curb the activities of these smugglers as this is affecting the small factories that can’t buy raw materials in bulk as we have to depend on the middlemen who decide to sell to smugglers who are willing to pay higher for it.

This has been affecting our production line as most factories might go for days not working because of the lack of raw materials,” he said.

Business view

The business of recycling metal scrap is said to be fast gaining grounds, boosting employment and investment opportunities in the country, however this might change soon if the government does not quickly intervene in making policies which would curtail the export and smuggling of the raw materials.

Investigations by NEXT show that most of the steel manufacturing companies in the country use locally sourced metal scrap as part of their input for steel processing.

“The metal scrap business has always been considered as a dirty business which entails people going to dumps to scavenge metal scraps. With the recycling of these metal scraps many businesses have sprout from the metal industry.

Most people do not know the importance of these metals. A truck load of pure copper wire scrap can fetch as much as N4 million, if sold to the right link and that is why people are bent on exporting it,” explained Mr Akinosun.

Some of the metals usually searched for include ferrous waste and scrap, refined copper wire bars and billets, copper-zinc base alloys, copper waste, nickel waste and scrap, aluminium waste and scrap, lead ingots, lead waste and scrap, lead plates, sheets, strip and foil, zinc waste and scrap and tin waste and scrap.

Checking against illegal export

Mukadan Azeez, a welder, said the price of metal scrap has been on the increase in recent times. He said this has affected the price at which they do their jobs as they use this scrap to supplement some of the steel.

“Most times, we have to rely on scrap metals because they are more effective and durable than some of the new iron sheet imported into the country. As major scrap users, we want the government to help monitor the sector so as to check the export of scrap and reduce the impact of low supply in the society as scrap dealers now prefer to sell in bulk to big companies who will export it than to little business people like us,” he added.

Mr. Akinosun said the business opportunities provided by the metal scrap will dwindle with the mass exportation of the raw material either because they can’t afford to buy them due to the increase in prices or because it would become scarce and no longer available in the country for local use.

“As a matter of fact, there is less stress and more money to be gained from exporting these materials from the country as there is a ready market for it in the Asian country.

Not checking the export of the commodity will definitely affect employment and the economy as this means we will be exporting for cheaper amounts in order to procure the more expensive finished product which we could have fabricated in our country,” he said.

http://234next.com/csp/cms/sites/Next/Money/Business/Markets/5548005-147/scrap_metal_scarcity_worries_users_.csp


This i don't care altitude and greediness is the root cause of our problems in Nigeria.    People just want to make money without caring the effect of their actions on the local industry.

The products are scarce and they are looking for better price.