Economy Expert Warns Proposed NAFDAC Bill May Create Regulatory Confusion, Threaten Ease of Doing Business

An economy and regulatory affairs analyst, Mr Joel Alalade, has raised concerns over the proposed amendment to the National Agency for Food and Drug Administration and Control (NAFDAC) Act, warning that some provisions of the bill may create regulatory overlaps, increase compliance burdens for businesses, and negatively impact Nigeria’s ease of doing business environment. Reacting to the recent public hearing on proposed Senate Bill 952 (SB.952) at the National Assembly, the economic analyst concluded it was a recipe for disorderliness, confusion, and policy complications that would ultimately make doing business in Nigeria more challenging.

According to Alalade, while strengthening regulatory institutions remains critical to protecting public health and consumer safety, any legislative reform must promote clarity, efficiency, and coordination among government agencies rather than create overlapping mandates.

“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.

Reviewing the proposed NAFDAC amendment bill, Alalade noted that some sections appear to introduce responsibilities that may overlap with existing regulatory frameworks, particularly in areas relating to tobacco product control, enforcement, and monitoring.

He argued that Nigeria already has established tobacco control legislation and institutions responsible for implementing tobacco-related regulations, adding that introducing additional layers of authority without clear boundaries could create duplication and weaken regulatory effectiveness.

“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 said.

The analyst further warned that regulatory uncertainty could have wider economic consequences, particularly as Nigeria seeks to attract investment, improve local manufacturing capacity, and strengthen its position as a competitive business destination.

“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 stressed that Nigeria’s regulatory reforms should follow international best practices, where agencies operate within clearly defined mandates and collaborate to achieve shared public policy objectives.

“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 added.

Alalade called for wider stakeholder consultation before passing the proposed amendment, urging lawmakers and policymakers to carefully assess the bill’s economic, regulatory, and institutional implications.

“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 concluded.

The proposed Senate ‘Bill on Food, Medical Products and Other Regulated Products Act 2026(SB 952) has passed a second reading, and it has been referred to the health committee headed by Senator Banigo for scrutiny.