NAFDAC amendment bill may trigger regulatory confusion, Hurt Investment, analyst warns

An economy and regulatory affairs analyst, Joel Alalade, has warned that the proposed amendment to the National Agency for Food and Drug Administration and Control (NAFDAC) Act could create regulatory confusion, increase business compliance costs and undermine Nigeria’s ease of doing business environment.

Alalade raised the concerns while reacting to the public hearing on the proposed Senate Bill 952 (SB 952) at the National Assembly, describing some of its provisions as potential sources of overlapping regulatory responsibilities and policy complications.

He cautioned that the proposed legislation, if not properly reviewed, could make business operations more difficult by introducing additional layers of regulation without clearly defining the responsibilities of existing government agencies.

According to him, strengthening regulatory institutions is essential for protecting public health and consumer safety, but legislative reforms must promote clarity, efficiency and coordination rather than duplicate existing 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 said.

Reviewing the proposed amendment, Alalade identified provisions relating to tobacco product control, enforcement and monitoring as areas requiring particular scrutiny.

He argued that Nigeria already has established tobacco control legislation and institutions responsible for implementing tobacco-related regulations, warning that introducing additional regulatory authorities without clearly defined boundaries could result in duplication and weaken enforcement.

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“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 added.

The analyst warned that such regulatory uncertainty could have wider economic implications, particularly at a time when Nigeria is seeking to attract investments, expand local manufacturing and strengthen its competitiveness as a business destination.

He noted that investors require predictable regulatory frameworks to make long-term business decisions, adding that conflicting compliance obligations could disrupt production planning and undermine business confidence.

“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 urged lawmakers to ensure that the proposed reforms reflect international best practices by establishing clearly defined institutional responsibilities while encouraging cooperation among regulatory agencies.

According to him, public health protection and economic growth can be achieved simultaneously through transparent, coordinated and investment-friendly regulations.

“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 also called for broader stakeholder engagement before the bill is passed, urging the National Assembly to undertake a comprehensive assessment of its economic, regulatory and institutional implications.

He maintained that legislation intended to strengthen regulatory oversight should not inadvertently create additional obstacles for legitimate businesses or weaken the country’s investment climate.

“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 Food, Medical Products and Other Regulated Products Act 2026 (SB 952) has passed second reading in the Senate and was referred to the Senate Committee on Health, chaired by Senator Ipalibo Harry Banigo, for further scrutiny.

The committee is expected to examine the proposed legislation and its implications for Nigeria’s food, drug and other regulated products sector.