Proposed NAFDAC Bill May Increase Business Costs, Create Regulatory Confusion

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 overlapping regulatory responsibilities, increase the cost of doing business and discourage investment in Nigeria.

Alalade raised the concerns while reacting to the public hearing on Senate Bill 952 (SB 952) at the National Assembly. He argued that some provisions of the proposed legislation could complicate the country’s regulatory system if lawmakers fail to clearly define the responsibilities of the agencies involved.

According to the analyst, although strengthening regulatory institutions is necessary to protect public health and consumer safety, legislative reforms should promote efficiency, transparency and coordination rather than introduce conflicting responsibilities.

He explained that businesses need clear and predictable regulations to operate effectively, warning that situations where different government agencies exercise similar powers could lead to unnecessary administrative processes and higher compliance costs.

“The objective of regulation should be to provide certainty and confidence for businesses, investors, and consumers. However, where multiple agencies are empowered to perform similar functions, the result can be regulatory confusion, increased cost of compliance, and uncertainty for operators,” he stated.

Analyst Raises Concerns Over Regulatory Overlaps

Reviewing the proposed NAFDAC amendment bill, Alalade identified areas where the proposed provisions could overlap with existing regulatory frameworks, particularly in the regulation, monitoring and enforcement of tobacco-related activities.

He noted that Nigeria already has established legislation and institutions responsible for tobacco control. According to him, introducing additional regulatory powers without clearly defining their limits could result in duplicated responsibilities and weaken the effectiveness of existing oversight mechanisms.

Alalade maintained that effective regulation depends more on clearly assigned responsibilities and proper coordination than the number of agencies involved.

He warned that overlapping mandates could slow down administrative decisions, increase bureaucratic procedures and create uncertainty for companies operating within the country’s legal framework.

“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.

Proposed Changes Could Affect Investment, Manufacturing

The analyst also cautioned that uncertainty surrounding regulatory responsibilities could affect Nigeria’s efforts to attract investments, expand local manufacturing and improve its competitiveness as a business destination.

He explained that investors consider the stability and predictability of a country’s regulatory environment before making long-term business commitments.

According to him, when companies are uncertain about which government agency has final authority or face overlapping compliance requirements, it could influence investment decisions, production plans and business confidence.

“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,” Alalade explained.

He called on lawmakers to ensure that the proposed reforms reflect international regulatory practices, where government agencies operate within clearly established mandates while working together to achieve common policy objectives.

Alalade further stressed that protecting public health and supporting economic development should not be treated as conflicting objectives.

He argued that Nigeria needs a regulatory framework capable of safeguarding consumers while creating a transparent and business-friendly environment for legitimate operators.

Alalade Urges National Assembly to Review Bill

The analyst called for broader consultations with relevant stakeholders before the proposed amendment is passed into law.

He urged members of the National Assembly to examine the potential economic, institutional and regulatory consequences of the bill, particularly its implications for businesses already operating under existing laws.

According to him, lawmakers must ensure that the proposed legislation strengthens Nigeria’s regulatory institutions instead of introducing additional complications for businesses and investors.

“The National Assembly has an important responsibility to ensure that new legislation strengthens Nigeria’s regulatory architecture rather than complicates it,” he concluded.

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

The debate surrounding the proposed legislation comes amid broader concerns about the need to balance effective regulatory oversight, public health protection and the cost of doing business in Nigeria.