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NAFDAC faces financial crisis despite N2.5bn revenue

By Mercy Aikoye, Abuja

The National Agency for Food and Drug Administration and Control (NAFDAC) is facing a financial crisis. Despite generating N2.5 billion from its recent clampdown on illicit drug markets, the agency is struggling to fund its operations.

NAFDAC’s Director-General, Prof. Mojisola Adeyeye, revealed that the agency generated N2.537 billion from fines collected during enforcement actions in Lagos, Onitsha, and Aba. However, after deductions, the agency was left with only N206 million.

Adeyeye explained that N996 million was spent on enforcement operations, N159 million was borrowed from a donor grant, and N1.175 billion went to regulatory expenses. “We had to borrow N159 million from an existing grant because we didn’t have funds,” she said.

The enforcement drive uncovered serious threats to public health, including expired and unapproved drugs. Adeyeye noted that some shop owners were caught distributing banned substances like Tramadol. “These charges were not punitive but necessary,” she said.

Adeyeye lamented that the agency’s inability to sustain critical operations is being crippled by severe revenue restrictions imposed by the federal government. The Office of the Accountant-General of the Federation (OAGF) has classified NAFDAC as a revenue-generating agency and begun sweeping up to 50% of its revenue inflows.

Lawmakers expressed concerns that Kano traders were treated more leniently compared to those in the southern part of the country. Adeyeye explained that the agency followed due process, guided by the urgency of a court judgment and prevailing security risks.

“Even a legal officer was almost killed at the court premises. It was a volatile situation,” she added.

The committee directed NAFDAC to return with a comprehensive, location-by-location account of the N2.5 billion generated from the raids. Chairman Regina Akume noted that the agency’s presentation was incomplete.

“The work has not been completed. I would like to give you a chance to go back and work on this,” she said.

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