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NAFDAC generates ₦2.5bn from drug market raids

The National Agency for Food and Drug Administration and Control has disclosed that recent raids on illicit drug markets in Lagos, Onitsha, and Aba led to the recovery of approximately ₦2.5 billion in fines, following widespread violations including the sale of fake, unregistered, and expired drugs.

The Director-General of the agency, Professor Mojisola Adeyeye, made this known on Wednesday at a session organized by the House of Representatives Committee on Food and Drug Administration and Control in Abuja.

“The total amount generated from the enforcement actions across the three locations was about ₦2.537 billion,” Prof. Adeyeye stated.

“These funds came from fines imposed on violators, many of whom were caught distributing banned substances or operating with poor storage practices.”

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According to her, the enforcement operations, which lasted several weeks and involved over 1,300 security operatives, aimed to protect public health and clamp down on illegal pharmaceutical activities.

Prof. Adeyeye explained that from the total amount collected, ₦996 million was used to fund the enforcement itself, ₦159 million was borrowed from an external grant due to funding constraints, and ₦1.18 billion was channeled toward regulatory expenses. “That leaves us with just ₦207 million in the account,” she said.

She clarified that all payments were made into the official NAFDAC account and were not intended as punitive measures but as deterrents. “For example, the standard fine for breaching Good Distribution and Storage Practice is ₦2 million, but in some cases, we reduced it to ₦500,000 to make it bearable.”

Speaking on enforcement efforts in Kano State, Adeyeye said the 2024 raid in the state was different, as it was carried out based on a Federal High Court ruling which mandated the relocation of drug market traders to the newly constructed Kanawa Coordinated Wholesale Centre.

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“The situation in Kano was volatile. Traders padlocked their shops and resisted, but we enforced the judgment. No fines were imposed because the operation was not based on administrative infractions but on a legal directive,” she explained.

She added, “We had to seal over 1,300 shops and move them into the regulated centre, despite starting the year with a zero balance after our accounts were shut down.”

In response to concerns from lawmakers over the perceived disparity in how Kano and southern markets were handled, the DG explained that the nature of the court order and security threats shaped their approach in Kano.

“Yes, in hindsight, we could have conducted more inspections or collected administrative charges. But the reality on ground made that nearly impossible. One of our legal officers was nearly lynched during the court process,” she added.

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On NAFDAC’s financial constraints, the agency’s Director of Finance and Accounts, Adeniji Nma, raised concerns over new federal policies that now classify NAFDAC as a revenue-generating agency.

“Since 2024, the Office of the Accountant-General of the Federation has been deducting 50% of all revenues generated by the agency. This year, it has risen to 75%,” she said. “This means when clients pay for inspections or services, the bulk of the money no longer goes to support our operations.”

Adeniji said the agency had written several letters requesting an exemption, stressing that their services are tied to public health and not intended for revenue generation.

The session ended with lawmakers demanding more transparency.

Committee Chairman, Hon. Regina Akume, said NAFDAC’s submission was incomplete. “We need a location-by-location breakdown of the ₦2.5 billion you reported. Go back and prepare a comprehensive account of what came in and how it was spent,” she directed.

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