Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Senate has taken decisive steps to enforce President Bola Tinubu's directive approving the refund of unauthorised deductions from the internally generated revenue of the National Agency for Food and Drug Administration and Control, following a disclosure by the agency's Director-General that the presidential approval granted in August 2025 has yet to be fully implemented. The move came during an investigative hearing of the Senate Committee on Finance on Wednesday, July 15, 2026, where NAFDAC Director-General, Professor Mojisola Adeyeye, revealed that approximately N21 billion had been deducted directly from payments made by clients for regulatory services, with only N13 billion refunded so far, leaving the agency struggling to settle outstanding liabilities of about N3.9 billion.
Appearing before the committee, Adeyeye recounted her meeting with President Tinubu in August 2025, where she presented evidence of the deductions that had significantly hampered the agency's operations. "I went to Mr. President in August last year and showed him what had been deducted," Adeyeye told the lawmakers. "The president authorised that unauthorised deductions should be returned to NAFDAC and that we should be removed from the revenue-generating agencies framework. Up till now, we have not received the implementation letter". The NAFDAC boss explained that the deductions stemmed from the Treasury Single Account policy introduced in January 2024, which required the agency to operate a zero-balance account, allowing deductions to be made before NAFDAC could access funds meant for its regulatory activities.
Adeyeye rejected suggestions that the deductions should be considered advance payments, insisting that the funds were taken before the agency could touch them. "It was not an advance payment. They deducted those monies before we touched them. These are funds meant for enforcement, post-marketing surveillance, laboratory testing and inspections. That is not an advance payment," she said. She further noted that NAFDAC is not a profit-making agency, and all internally generated revenue is reinvested in carrying out its statutory regulatory responsibilities. The agency generated approximately N18.73 billion in 2023, N29.8 billion in 2024, and N39.6 billion in 2025, exceeding its revenue targets despite the operational challenges posed by the TSA policy.
Responding to the NAFDAC DG's testimony, the Chairman of the Senate Committee on Finance, Senator Sani Musa, directed the agency to submit the presidential approval to the panel to enable legislative action aimed at implementing the directive. "The performance of NAFDAC looks very good," Musa said. "The reconciliation needs to be done between the Office of the Accountant-General of the Federation and the Fiscal Responsibility Commission so that every agency has a clear understanding of what is expected. All money that is due to the agency should be given to the agency, and all money that belongs to government should be taken". The committee subsequently directed the Office of the Accountant-General of the Federation to nominate a senior official to work with NAFDAC and the Fiscal Responsibility Commission to reconcile the agency's accounts.
The committee's directive extends beyond NAFDAC, as it also gave the Ogun-Osun River Basin Development Authority a 14-day ultimatum to regularise its financial records or face sanctions, including the suspension of budget releases. The Fiscal Responsibility Commission had reported that the agency had failed to submit audited financial statements since 2022 and still had unresolved financial liabilities. The hearing forms part of the Senate's ongoing investigation into the remittance of internally generated revenue and operating surplus by Ministries, Departments, and Agencies into the Consolidated Revenue Fund for the 2023 to 2025 financial years, as part of broader efforts to enforce compliance with the Fiscal Responsibility Act and other public finance laws.
Senator Natasha Akpoti-Uduaghan, representing Kogi Central, also used the hearing to urge NAFDAC to champion the development of an indigenous pharmaceutical industry built on Nigeria's medicinal plants. She argued that the initiative would strengthen healthcare delivery, reduce dependence on imported medicines, and unlock economic opportunities. "NAFDAC should champion the development of an indigenous pharmaceutical industry by refining and processing our medicinal plants into capsules, tablets, syrups and other certified medicines," Akpoti-Uduaghan said. Adeyeye responded that the agency already has a framework for regulating traditional medicines but lacks adequate funding for clinical trials required for international recognition.
The Senate Committee on Finance commended NAFDAC for its improved revenue performance and financial management despite the challenges, while urging the agency to sustain transparency and accountability in its operations. Senator Musa stressed that while all revenues due to the Federal Government must be remitted, funds legitimately belonging to agencies should be released promptly to enable them to perform their statutory responsibilities. The committee's directive for reconciliation and its threat of sanctions for non-compliant agencies signal a new phase of legislative oversight aimed at ensuring that presidential directives are implemented and that government agencies receive the funds necessary to carry out their mandates. For NAFDAC, the Senate's intervention offers hope that the remaining N8 billion in outstanding refunds may finally be released, enabling the agency to settle its liabilities and continue its critical work of safeguarding public health.
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