How FG can tackle substandard steel production, circulation in Nigeria — Awoyale, National President, IRSDEUN

In this interview with NURUDEEN ALIMI, the National President of Iron Rod and Steel Distributors Employers Union of Nigeria (IRSDEUN), Chief Gbenga Awoyale, shares his thoughts on the menace of substandard steel production as well as circulation in Nigeria, government’s response and other sundry issues:

What informed the formation of IRSDEUN?

You will agree with me that the production-marketing process is not complete until goods get to final consumer. That makes us critical stakeholders as suppliers and distributors of iron rods and steel products in Nigeria. In many occasions, we are the ones interfacing with users of these products and get their reviews. One of the major reasons for coming together as a Union is to unite ourselves against proliferation of substandard products which has taken over our markets for so many years and also, to ensure effective control of price within reasonable limits.
Since our approval and recognition by the Federal Government of Nigeria, we have been resolute in our commitment to assist the government in fighting circulation of substandard steel products in Nigeria. We have extended hands of fellowship to the Standard Organization of Nigeria (SON),the Federal Ministry of Mines and Steel and security agencies among other critical stakeholders, to ensure the surge is nipped in the bud.

What are the challenges being faced by the union?

As trade unionists, our first major challenges that bothers us so much is the issue of proliferation of substandard steel products. The second is touting, especially in Lagos state. We’ve had many of our trucks vandalized and employees injured and even killed by touts parading themselves as revenue collectors on behalf of the government.
We have always been responsible in our business conducts. We are ready and willing to pay taxes and revenue but all we seek is a dignifying, seamless and transparent framework for revenue collection, not via harassment. We are however grateful for the swift response of Lagos state Government, Mr. Babajide Sanwoolu to our SOS to his office over the issue of touting issue. His timely response is a testament to his dedication and commitment to ease of doing business in Lagos state and we encourage other state governments to emulate that.
Also, the unhealthy and alien practices of some of these foreigners producing iron rods in Nigeria, with deliberate attempt to force us as distributors out of the market is a major challenge.
It is really stifling our ability to make profit. They are killing our businesses with the incessant and unjustifiable increase in prices of iron rods. For God sake, a ton of iron scarps only increased by N15,000and before you know it, they increased price of a ton of the product by N500,000 and that is done to force end users to buy directly from them, because they’ve been seen as thorn in their flesh for calling on them to revert to producing quality products for Nigerians consumption. That’s our only sin.
This is why we call on government to come to our rescue. We are fighting for this country and it is either the government support us or them. If the production of substandard product continues unchecked, it amounts to our own government aiding them to sabotage our own economy.

Do you think Nigeria is achieving progress in the fight against substandard steel products?

I don’t think, I can say without mincing words that as a country, we have not made progress in fighting against production and circulation of substandard products, not just steel. Hardly would you see any consumer goods in Nigeria that has not been adulterated.
However, the case of iron rods and steel products is peculiar. It is not as if these products are adulterated but virtually all the producers of iron Rod and steel products in Nigeria, majority of which are foreigners, no longer produce good quality for Nigeria markets. Whereas, the same companies produce good quality for export, sadly, even to neighboring countries as close as Ghana. It is therefore disturbing, why they think Ghana and other neighboring countries deserves quality iron Rod and steel products from Nigeria, but the people of the host country itself doesn’t deserve quality steel. If these expatriates values their higher profits more than our lives, we should value our own peoples’ live more than their economic interest.
Unfortunately, this is telling on the lives, property and our economy of our nation. These substandard steel products are what government and private businesses are using for construction. It has a negative effect on the integrity and durability of these constructions. In 2022, Nigeria recorded over 62 building collapse across the country. We’ve had incidences of public infrastructure and personal building collapse.
Although, a law that seeks to criminalize production of substandard products in Nigeria had been passed by the National Assembly, however, I think it wasn’t assented to before expiration of President Buhari’s tenure. I urge the current National Assembly to look into that and ensure such law is passed and gets presidential assent.

What are the challenges you think are responsible for the ineffective fight against substandard products in Nigeria?

You see, the Standard Organisation of Nigeria (SON) have statutory mandate to ensure only quality consumer goods are circulated in our markets but I honestly believe they are not efficiently discharging that responsibility for so many reasons. We have task force, we go around and alert SON. in some occasions when they respond, they found our alarm to be true but most of the culprits don’t face any serious penalty.
So, I think the new administration should show very strong commitment to fighting substandard steel products circulation. Many lives has been lost to building collapse, billions of Naira wasted.
I also feels the SON lacks adequate manpower and modern technology to effectively monitor not only steel production in Nigeria, but production of consumer goods across sectors. The proliferation of substandard goods is a serious threat to Nigeria economy and should be accorded the all important attention it deserves.
Another major bane is policy summersault and lack of continuity. I give you an instance of a mop up action of substandard steel products that was supposed to commence on 1st October 2023. The circular was issued in September 2023, to give ample time for all producer and suppliers to clear their stores of all substandard products and seize any such product found to be substandard. But because of change in leadership of the SON, despite writing to remind the SON of the circular it issued and commence actions in October 2023, nothing happens till date.
Notwithstanding, I must acknowledge and commend the efforts of the 10th National Assembly in their swift response to the menace. In less than 6months to the inauguration, they adopted a motions with respect to proliferation of substandard product. We are urging President Bola Tinubu to match that with executive action, as a part of his strategy for Nigeria’s economic survival.

Any suggestion for improvement on the fight against substandard products?

Like I’ve said, the SON needs to up their game. Be more upright in its approach and actions. They should operate in such an open manner that enables the common consumer on the street to report substandard products to them and be confident it’d be taken up. There is also need for review of laws establishing SON, especially relating to appointment of its top officials. They cannot continue to be used to sabotage the Organization by taking up employment with those they had previously regulated while in office. It is a serious ethical issue.