An economic and regulatory affairs analyst, Joel Alalade, has warned that proposed amendments to the National Agency for Food and Drug Administration and Control (NAFDAC) Act could create regulatory overlaps, increase compliance costs for businesses and negatively affect Nigeria’s ease of doing business environment.
Alalade raised the concerns following a public hearing on Senate Bill 952 (SB.952) at the National Assembly, describing some of its provisions as potential sources of confusion, administrative complications and additional challenges for businesses operating in Nigeria.
He acknowledged the importance of strengthening regulatory institutions to protect public health and consumer safety but argued that legislative reforms should promote clarity, efficiency and coordination among government agencies rather than introduce overlapping responsibilities.
“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 said.
Reviewing the proposed NAFDAC amendment bill, Alalade said some provisions appeared to introduce responsibilities that could overlap with existing regulatory frameworks, particularly in areas involving tobacco product control, enforcement and monitoring.
He noted that Nigeria already had established tobacco control legislation and institutions responsible for implementing related regulations.
According to him, introducing additional layers of regulatory authority without clearly defining their respective responsibilities could result in duplication and weaken the effectiveness of existing regulatory arrangements.
“The number of agencies involved does not determine effective regulation, but rather how clearly responsibilities are defined and how efficiently those responsibilities are implemented. Duplication of regulatory roles can slow decision-making, increase administrative complexity and create uncertainty for businesses operating within the legal framework,” he stated.
The analyst warned that regulatory uncertainty could have broader economic implications, particularly as Nigeria seeks to attract investment, expand local manufacturing capacity and strengthen its position as a competitive business destination.
He said investors required predictable regulatory environments, adding that uncertainty over which agency had final authority or conflicting compliance requirements could affect investment decisions, production planning and long-term 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 Nigeria to align its regulatory reforms with international best practices, where agencies operate within clearly defined mandates while collaborating to achieve shared public policy objectives.
Alalade stressed that protecting public health and promoting economic growth were not mutually exclusive, arguing that effective regulation should balance consumer safety with a transparent and investment-friendly business environment.
“Public health protection and economic growth are not mutually exclusive. The challenge is to create regulations that protect citizens while maintaining a transparent, coordinated and investment-friendly environment,” he said.
Alalade urged lawmakers and policymakers to undertake broader consultations with relevant stakeholders before passing the proposed amendment.
He called for a careful assessment of the bill’s economic, regulatory and institutional implications to ensure that its implementation would not create unnecessary obstacles for legitimate businesses.
“The National Assembly has an important responsibility to ensure that new legislation strengthens Nigeria’s regulatory architecture rather than complicates it. A law designed to improve oversight must not unintentionally create confusion, duplication or barriers to legitimate business activities,” he said.
The proposed Senate Bill on Food, Medical Products and Other Regulated Products Act 2026 has passed its second reading and has been referred to the Senate Committee on Health, chaired by Senator Ipalibo Banigo, for further consideration.
