The National Agency for Food and Drug Administration and Control (NAFDAC) announced that it generated ₦2.5 billion in revenue from its latest clampdown on unauthorised drug markets in Lagos, Onitsha, and Aba.
NAFDAC’s Director-General, Prof. Mojisola Adeyeye, disclosed this during a briefing before the House Committee on Food and Drug Administration and Control on Wednesday.
The funds, she said, were obtained from fines imposed on vendors caught distributing counterfeit or expired medicines during the agency’s enforcement drive across the three cities.
“The charges collected were paid directly into a NAFDAC account. The total amount was about N2.5 billion. roughly N2.537 billion. For the operation in the three markets—Lagos, Onitsha, and Aba, about N996 million was spent. We had to borrow N159 million from an existing grant because we didn’t have funds. In addition, regulatory expenses amounted to N1.175 billion. So, out of the N2.537 billion, we have only about N207 million left in the account,” she stated.
She further revealed that over 1,300 security personnel were deployed for the operation, which uncovered widespread infractions ranging from expired medicines to improper storage conditions.
“These charges were not punitive but necessary. The standard fine for violating Good Distribution and Storage Practice (GDSP) is N2 million, but in many cases, we reduced it to N500,000,” she said.
Adeyeye lamented the difficulty in sustaining such operations, citing revenue restrictions by the federal government as a major constraint. She explained that of the ₦19 billion the agency had at the end of 2023, only ₦4.5 billion was made available, as ₦9 billion was swept by the government before it could be accessed.
Responding to claims of unequal treatment between northern and southern markets, Adeyeye explained that the enforcement in Kano was guided by a Federal High Court ruling and was executed under entirely different security and legal circumstances.
“In the South, Lagos, Onitsha, Aba, there was no CWC. So, our approach was different. We had time to prepare, inspect, and charge offenders according to their violations,” she explained.
“In retrospect, yes, we could have done more inspections or collected administrative fees. But that wasn’t feasible under the circumstances. Even a legal officer was almost killed at the court premises. It was a volatile situation,” she added.
Adeniji Nma, NAFDAC’s Director of Finance and Accounts, also highlighted that the Office of the Accountant-General of the Federation had designated NAFDAC as a revenue-generating agency, resulting in up to 50% of its revenues being channelled to the federal treasury.
“Because of this, we find it difficult to do most of our operations,” Nma stated.
Lawmakers demanded a location-specific breakdown of the ₦2.5 billion collected during the raids. The NAFDAC team was unable to provide the details on the spot and was directed to submit the breakdown at a later date.
