The DG said the revenue was derived from fines imposed on traders found guilty of selling fake, expired or unregistered drugs.

The Director-General of the food and drug regulator, NAFDAC, Mojisola Adeyeye

The Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye, has disclosed how the agency expended N2.5 billion generated from enforcement operations across three major open drug markets in Lagos, Onitsha, and Aba.

Appearing before the House of Representatives Committee on Food and Drug Administration and Control, Mrs. Adeyeye explained that the revenue came from fines imposed on traders found guilty of selling fake, expired, or unregistered drugs.

“The total amount collected was about N2.5 billion,” she stated, clarifying that all funds were deposited directly into NAFDAC’s official account.

Breakdown of Expenditure

Out of the N2.5 billion:

• ₦996 million was spent on the enforcement operations themselves, which lasted up to four weeks in some locations.
• ₦1.175 billion covered regulatory expenses.
• ₦159 million was borrowed from an existing donor grant to manage funding shortfalls.

After all deductions, only ₦206 million remained in the agency’s account. The operations, according to Prof. Adeyeye, required over 1,300 security personnel and uncovered widespread violations including the sale of banned substances like Tramadol.

She highlighted that many shop owners breached Good Distribution and Storage Practices (GDSP), with fines ranging between ₦500,000 and ₦2 million, depending on the severity of violations.

Why Kano Operation Was Different

Unlike the enforcement raids in the southern markets, the operation in Kano was court-ordered. The Federal High Court directed all open drug market traders to relocate to the Coordinated Wholesale Centre (CWC), Kanawa Pharmaceutical Centre.

“In Kano, no administrative charges or fines were collected. The operation was solely about enforcing the court’s directive,” she said.

Despite security threats and resistance from traders, NAFDAC proceeded with relocating over 1,300 shops, even though the agency’s accounts had been reactivated with a zero balance at the start of 2024.

Prof. Adeyeye noted that Kano remains the only state to have completed its CWC, unlike the South where there were no CWCs at the time, hence the variation in operational strategies.

Revenue Challenges and Transparency Concerns

Members of the House Committee raised concerns about regional disparities and questioned the transparency of NAFDAC’s revenue management. They asked why fines were collected in the South but not in the North.

In response, Prof. Adeyeye cited the urgency and volatile conditions during the Kano operation, stating that imposing fines at that time was not feasible.

The agency’s Director of Finance, Adeniji Nma, further revealed that the Office of the Accountant-General of the Federation (OAGF) had recently reclassified NAFDAC as a revenue-generating agency, triggering aggressive deductions from its income.

In 2024, 50% of all revenue inflows were deducted by the treasury. This increased to 75% in 2025, severely restricting the agency’s operational capacity.

“We are not actually a revenue-generating agency; we’re meant to protect public health. Many payments are tied to specific services, yet the deductions continue,” she explained.

Lawmakers Demand More Clarity

Following the presentation, the committee requested a detailed, market-by-market breakdown of how the N2.5 billion was collected and spent. Committee Chair, Regina Akume (APC, Benue), expressed dissatisfaction with the current submission.

“We haven’t talked about what goes in and what goes out,” she said, directing the agency to return with a full financial report.