)The Senate Committee on Finance on Wednesday directed the Office of the Accountant-General of the Federation (OAGF) and the Fiscal Responsibility Commission (FRC) to reconcile deductions.
The deductions were made from the revenue of the National Agency for Food and Drug Administration and Control (NAFDAC).
The Chairman of the Committee, Sen. Sani Musa gave the directive during an investigative hearing on the remittance of internally generated revenue and operating surplus into the Consolidated Revenue Fund (CRF) from 2023 to 2025.
Musa noted that the reconciliation became necessary following discrepancies between NAFDAC and the FRC over operating surplus deductions.
According to NAFDAC, the agency generated N18.73 billion in 2023, N29.85 billion in 2024, and N39.6 billion in 2025, reflecting steady growth in revenue.
The NAFDAC Director-General, Prof. Mojisola Adeyeye said the agency had remitted about N3.9 billion as operating surplus between 2007 and 2023 before its financial challenges began.
She explained that in January 2024, NAFDAC was directed to operate a new Treasury Single Account with a zero balance, adding that it affected its operations.
“We could not settle our liabilities because deductions were made from our revenue before we had access to the funds,” Adeyeye said.
She disclosed that about N21 billion deducted directly from payments made by clients had yet to be fully refunded, noting that only N13 billion had been returned.
“These are funds paid by clients for regulatory services, not government allocations. They are meant for enforcement, laboratory testing and post-marketing surveillance,” she added.
Adeyeye said President Bola Tinubu had approved the refund of unauthorised deductions in August 2025, but the directive had yet to be fully implemented.
She also said the President approved NAFDAC’s removal from the list of revenue-generating agencies, adding that the agency was still awaiting formal implementation.
Responding, the committee chairman advised the agency to submit the presidential approval to the committee for legislative action.
“Send us the letter with the presidential approval. The committee will examine it and take the necessary action,” he said.
The committee also directed the OAGF to assign a senior official to reconcile NAFDAC’s accounts with the Fiscal Responsibility Commission.
According to the committee, all revenue due to government should be remitted, while funds legitimately belonging to agencies should be released without delay.
The committee commended NAFDAC for improving its revenue generation and maintaining prudent financial management in operational challenges.
“Your performance has improved significantly, but reconciliation with the Accountant-General’s Office remains necessary,” Musa added.
In her contribution, Sen Natasha Akpoti-Uduaghan encouraged NAFDAC to expand research into alternative medicine, noting Nigeria’s potential in medicinal plants such as moringa, neem tree and bitter leaf.
Responding, Adeyeye said the agency already had a structured framework for regulating traditional medicines but lacked adequate funding for clinical trials.
“We regulate alternative medicines for quality and safety, but clinical trials require significant funding and laboratory infrastructure,” she said.
Adeyeye also dismissed claims that medicines circulating in Nigeria had only 30 percent efficacy.
“That is not correct. We have made bioequivalence studies mandatory for manufacturers to ensure medicines meet internationally accepted standards,” she emphasised(NAN)
