Baban-Bola Dealers Threaten October 1 Shutdown Over Scrap Price Cuts

Scrap metal dealers, popularly known as Baban-bola, have threatened to shut down their operations and stop supplying iron and steel companies nationwide from October 1, 2026, over alleged arbitrary price reductions and other challenges in the scrap metal industry.

The National Association of Scrap and Waste Dealers Employers of Nigeria, NASWDEN, said the planned industrial action would initially last until October 15, with the possibility of an indefinite extension if the dealers’ grievances are not addressed.

The association’s Deputy National President, Aminu Hassan Soja, disclosed this in a statement issued in Kano on Thursday on behalf of the National President, Abdulfatah Ogunwale.

NASWDEN accused some iron and steel companies of repeatedly reducing scrap metal prices without giving dealers adequate notice, saying the practice had subjected operators to heavy financial losses.

According to the association, dealers could lose between N3 million and N6 million on a single truckload when companies suddenly reduce their purchase prices after the materials have already been bought and transported.

The dealers also alleged that some companies deduct between one and five per cent from transactions under what they described as “extra dust”, which they said further reduces their earnings.

NASWDEN also raised concerns over the alleged growing involvement of foreigners in the scrap metal business, including the establishment of dumpsites and collection centres across the country.

The association said the development was making it increasingly difficult for indigenous Baban-bola operators to remain in business, and called for stronger government regulation of the sector.

It further alleged that some iron and steel companies purchase scrap from unregistered or uncertified dealers and agents, warning that the practice could encourage the circulation of vandalised public and private property.

The association called for proper registration and verification of scrap dealers, saying only materials obtained through legitimate channels should enter the steel industry.

While announcing the planned shutdown, Ogunwale urged members to remain peaceful and law-abiding, warning them against confrontation, violence, destruction of property and other actions capable of disrupting public order.

NASWDEN said it preferred dialogue and negotiation with iron and steel companies and called on relevant government agencies to intervene in the dispute.

The association said its objective was to secure a fair and mutually acceptable framework for scrap metal pricing, transactions and regulation across the country.