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By Tracy Moses
The National Agency for Food and Drug Administration and Control (NAFDAC) has disclosed that it realized N2.5 billion in fines from recent enforcement exercises carried out in major open drug markets in Lagos, Onitsha, and Aba.
Director-General of NAFDAC, Prof. Mojisola Adeyeye, made the disclosure on Wednesday while appearing before the House of Representatives Committee on Food and Drug Administration and Control. She said the fines were imposed on vendors involved in the sale of fake, expired, or poorly stored pharmaceutical products during extensive clampdowns in the three cities.
Adeyeye emphasized that all funds were paid directly into the agency’s official account. Out of the total N2.537 billion generated, she said N996 million was spent on the enforcement operations, N159 million was sourced from a donor grant to supplement costs, and N1.175 billion covered regulatory expenditures. The agency was left with roughly N206 million after all deductions.
According to her, over 1,300 security operatives were deployed during the operations, which uncovered serious violations including the distribution of banned drugs like Tramadol and the sale of unregistered medicines.
“These fines were not meant to punish, but to enforce regulatory compliance,” she said. “Although the standard fine for violating Good Distribution and Storage Practice (GDSP) is N2 million, in many instances we lowered it to N500,000.”
She lamented that NAFDAC’s ability to continue such operations has been significantly hampered by funding challenges. At the end of 2023, the agency had N19 billion in its accounts, but N9 billion was withdrawn before access was granted, leaving only N4.5 billion for operations.
Speaking on NAFDAC’s court-mandated enforcement in Kano earlier in 2024, Adeyeye described it as a distinct operation from those in the South. She said the Federal High Court ruling of February 16, 2024, ordered the relocation of open market drug dealers to the newly established Kanawa Pharmaceutical Centre, a Coordinated Wholesale Centre (CWC).
“The resistance was intense. Some traders locked their shops, but we sealed them with bigger padlocks,” she said. “They were only allowed to reopen after agreeing to relocate.”
Unlike the Lagos, Onitsha, and Aba raids, no fines or administrative penalties were collected in Kano due to the court order and prevailing security risks. Post-marketing surveillance was carried out after relocation.
“At that time, our accounts had just been unfrozen with a zero balance in January 2024,” she added. “Despite the financial strain, we had to implement the court ruling, moving over 1,300 shops into the CWC.”
Adeyeye praised the Kano State Government for complying with a presidential directive by completing its CWC long before her tenure, unlike the southern states where no such centres existed, necessitating direct sanctions on violators.
Responding to lawmakers’ concerns over perceived preferential treatment for Kano traders, the DG maintained that the agency’s actions were guided strictly by court directives and the tense security environment.
“In retrospect, we could have conducted more inspections or imposed fines, but the situation was too volatile. One of our legal officers was nearly assaulted. We had to prioritize safety,” she said.
NAFDAC’s Director of Finance and Accounts, Mrs. Adeniji Nma, also addressed the committee, stating that the Office of the Accountant-General of the Federation (OAGF) had reclassified NAFDAC as a revenue-generating agency, leading to automatic deductions from its income.
“From 2024, OAGF began withholding 50 percent of our earnings. In 2025, the deduction rose to 75 percent,” she said. “This severely limits our ability to operate, especially since our income is tied to services rendered.”
Following the presentation, Hon. Emeka Idu requested a detailed breakdown of revenue generated per location during the raids. Committee Chairperson Hon. Regina Akume noted that the presentation was incomplete and directed the agency to return with a more comprehensive, city-specific financial report.
“We need clear figures, what was received, and what was spent,” Akume stated. “Please go back and clean up your records. This committee expects a full accounting of all enforcement revenue.”