An economic 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 business compliance costs and undermine efforts to improve Nigeria’s ease of doing business.
Alalade raised the concerns following a public hearing on Senate Bill 952, the proposed Food, Medical Products and Other Regulated Products Act 2026, which has passed second reading and been referred to the Senate Committee on Health, chaired by Senator Banigo, for further scrutiny.
He argued that while stronger regulatory institutions were necessary to protect public health and consumer safety, the proposed legislation must clearly define the responsibilities of government agencies to avoid duplication of functions.
According to him, some provisions of the bill appear to introduce responsibilities that could overlap with existing regulatory frameworks, particularly in tobacco product control, enforcement and monitoring.
He noted that Nigeria already had established tobacco control legislation and institutions responsible for implementing related regulations, warning that additional layers of authority without clearly defined boundaries could weaken regulatory effectiveness.
“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.
Alalade warned that uncertainty over regulatory authority could affect investment decisions, production planning and businesses’ confidence, particularly as Nigeria seeks to attract investment and expand local manufacturing.
He maintained that effective regulation depended more on clearly defined responsibilities and efficient implementation than on the number of agencies involved.
The analyst called on lawmakers to align the proposed reforms with international best practices by ensuring that regulatory institutions operate within clearly defined mandates while maintaining effective collaboration.
He also urged the National Assembly to undertake wider stakeholder consultations and assess the economic, regulatory and institutional implications of the bill before its passage.
Alalade said public health protection and economic growth could be pursued together through transparent, coordinated and predictable regulatory policies.