NAFDAC Generates N2.5 Billion from Raids on Open Drug Markets in Lagos, Onitsha, and Aba
The National Agency for Food and Drug Administration and Control (NAFDAC) has disclosed that it generated a total of N2.5 billion from enforcement operations conducted in major open drug markets across Lagos, Onitsha, and Aba.
Revenue Breakdown and Expenditure Details
NAFDAC Director-General, Professor Mojisola Adeyeye, revealed this information during an appearance before the House of Representatives Committee on Food and Drug Administration and Control. The revenue was primarily derived from fines imposed on traders found guilty of selling counterfeit, expired, or unregistered pharmaceutical products.
“The total amount collected was about N2.5 billion,” Adeyeye stated, emphasizing that all payments were deposited directly into NAFDAC’s official government account.
The agency provided a detailed breakdown of how these funds were utilized:
- N996 million spent on enforcement operations
- N1.175 billion allocated to regulatory expenses
- N159 million borrowed from existing donor grants to cover operational shortfalls
- N206 million remaining balance after deductions
Scope of Enforcement Operations
The extensive operations, which lasted up to four weeks in some locations, involved:
- Deployment of over 1,300 security personnel
- Discovery of widespread violations including sale of banned substances like Tramadol
- Identification of numerous breaches of Good Distribution and Storage Practices (GDSP)
Fines imposed on violators ranged between N500,000 and N2 million, depending on the severity of the infractions.
Financial Challenges and Revenue Restrictions
Professor Adeyeye expressed significant concerns about the agency’s financial sustainability, describing current revenue restrictions as “crippling.” She revealed that while NAFDAC had about N19 billion in its accounts at the end of 2023, only N4.5 billion remained accessible after government deductions.
The Director of Finance and Accounts, Adeniji Nma, provided additional context, explaining that the Office of the Accountant-General of the Federation (OAGF) had reclassified NAFDAC as a revenue-generating agency, leading to aggressive deductions:
- 50% of all revenue inflows deducted in 2024
- 75% deduction rate implemented in 2025
Kano Operation: A Different Approach
The agency’s operation in Kano followed a distinct protocol, as it was executed based on a Federal High Court judgment rather than NAFDAC’s standard enforcement procedures. The February 2024 operation focused on relocating open drug market traders to the newly built Coordinated Wholesale Centre (CWC), known as the Kanawa Pharmaceutical Centre.
Key differences in the Kano operation included:
- No administrative charges or fines collected
- Primary focus on enforcing court relocation directives
- Relocation of over 1,300 shops despite security challenges
“The traders initially resisted. There were real threats of violence. But we had no choice; we had to act,” Adeyeye recounted, describing how the agency had to use larger padlocks to seal shops whose owners resisted relocation.
Lawmakers Demand Financial Accountability
During the hearing, committee members raised questions about:
- Regional disparities in enforcement approaches
- Financial transparency in revenue management
- Allocation of collected funds
Committee member Emeka Idu (LP, Anambra) specifically requested a detailed breakdown of revenue generated from each market location. When NAFDAC officials couldn’t provide this data immediately, Committee Chair Regina Akume (APC, Benue) directed the agency to submit a comprehensive financial report.
Future Challenges and Operational Constraints
NAFDAC officials emphasized the growing challenges in maintaining effective operations due to:
- Increasing revenue deductions by the federal government
- Security risks during enforcement operations
- Limited resources to combat widespread pharmaceutical violations
The agency maintains that its primary mandate is safeguarding public health rather than revenue generation, despite its current classification by financial authorities.
For more details on this story, read the original report on Premium Times.