Susan Abayomi 

An‌ economic and regulatory affairs analyst, Mr Joel Alalade, has cautioned that the proposed amendment to the National Agency for Food and Drug Administration and Control (NAFDAC) Act could create regulatory conflicts, increase the cost of compliance for businesses and undermine Nigeria’s ease of doing business environment.

Alalade expressed his concerns following a public hearing on Senate Bill 952 (SB 952) at the National Assembly, describing some of its provisions as potentially capable of creating institutional confusion, policy inconsistencies and additional challenges for businesses operating in the country.

While acknowledging the importance of strengthening regulatory institutions to safeguard public health and consumer interests, the analyst maintained that legislative reforms should promote efficiency, transparency and cooperation among government agencies rather than introduce overlapping responsibilities.

He noted that granting multiple agencies similar regulatory powers could expose businesses to conflicting directives, additional compliance costs and uncertainty over the appropriate authorities responsible for enforcement.

According to him, effective regulation depends not on the number of agencies involved but on clearly defined responsibilities and efficient implementation.

Examining the proposed amendment, Alalade identified provisions that could overlap with existing regulatory structures, particularly those relating to tobacco product control, monitoring and enforcement.

He pointed out that Nigeria already has established legislation and institutions responsible for tobacco regulation, warning that introducing additional layers of authority without clearly defined boundaries could result in duplication of functions and weaken the effectiveness of existing regulatory arrangements.

The analyst also warned that regulatory uncertainties could have far-reaching implications for Nigeria’s economic development, especially as the country seeks to attract investment, expand local manufacturing and strengthen its competitiveness as a business destination.

He explained that investors depend on predictable policies and clearly defined regulatory requirements when making investment decisions. Where businesses face uncertainty over agency responsibilities or encounter overlapping compliance obligations, it could negatively affect investment confidence, production planning and long-term business operations.
Alalade stressed the need for Nigeria’s regulatory framework to reflect international best practices, with government agencies operating within clearly established mandates while maintaining effective collaboration in achieving common policy objectives.

He maintained that protecting public health and promoting economic growth should complement each other, emphasising the need for regulations that safeguard citizens without creating unnecessary obstacles for legitimate businesses.

The analyst therefore called on lawmakers and relevant stakeholders to undertake a broader assessment of the proposed legislation before its passage, particularly regarding its economic implications, institutional responsibilities and potential impact on the business environment.

He urged the National Assembly to ensure that the proposed amendment strengthens Nigeria’s regulatory system rather than introduces additional layers of bureaucracy, conflicting responsibilities or barriers to legitimate commercial activities.

The proposed Food, Medical Products and Other Regulated Products Act, 2026 (Senate Bill 952), has passed its second reading at the Senate and was subsequently referred to the Senate Committee on Health, chaired by Senator Banigo, for further consideration.