Proposed NAFDAC bill may complicate business environment, analyst warns

By Adebola Muili

An economic and regulatory affairs analyst, Mr Joel Alalade, has warned 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 doing business and discourage investment if passed without addressing potential overlaps in the responsibilities of government agencies.

Alalade, who reacted to the proposed Senate Bill 952 (SB 952), said some provisions of the legislation could introduce overlapping regulatory responsibilities, particularly in tobacco product control, enforcement and monitoring, thereby creating confusion for businesses and weakening the effectiveness of existing regulatory frameworks.

He expressed the concerns following a public hearing on the proposed legislation at the National Assembly, describing the bill, in its present form, as capable of creating disorderliness and policy complications in Nigeria’s regulatory environment.

According to him, although strengthening regulatory institutions is necessary to protect public health and consumer safety, legislative reforms should promote clearly defined responsibilities and effective coordination rather than introduce multiple layers of authority.

He argued that Nigeria already has established legislation and institutions responsible for tobacco control, warning that assigning similar responsibilities to additional agencies without clearly defining their respective powers could result in duplication of functions.

“The number of agencies involved does not determine effective regulation, but rather how clearly responsibilities are defined and how efficiently those responsibilities are implemented,” he said.

Alalade added that overlapping mandates could slow administrative processes, increase compliance costs and create uncertainty for businesses operating within the country’s legal framework.

He noted that such uncertainty could have wider implications for Nigeria’s economic growth, particularly at a time the country was seeking to attract investment, expand local manufacturing and improve its competitiveness as a business destination.

The analyst explained that investors needed a predictable regulatory environment to make long-term business decisions, warning that uncertainty over which agency had final authority on particular regulatory matters could affect investment decisions and production planning.

“Investors require predictable regulatory environments. When businesses are uncertain about which agency has final authority or when compliance obligations overlap, it can affect investment decisions, production planning, and long-term business confidence,” he said.

He maintained that Nigeria’s regulatory reforms should reflect international best practices by ensuring that government agencies operate within clearly defined mandates while collaborating on shared policy objectives.

According to him, protecting public health and promoting economic growth should not be treated as competing priorities, stressing the need for regulations that safeguard consumers without creating unnecessary obstacles for legitimate businesses.

Alalade therefore called on the National Assembly to undertake a thorough assessment of the economic, regulatory and institutional implications of the proposed amendment before its passage.

He also urged lawmakers to broaden stakeholder consultations to ensure that the concerns of businesses, investors and other relevant groups were considered in the legislative process.

He cautioned that legislation intended to strengthen regulatory oversight should not inadvertently introduce administrative complications or barriers capable of undermining legitimate business activities.

The proposed Food, Medical Products and Other Regulated Products Act 2026 (SB 952) has passed second reading in the Senate and was referred to the Senate Committee on Health, chaired by Senator Ipalibo Banigo, for further legislative scrutiny.