NAFDAC rakes in N2.5b from crackdown on fake drug markets in Lagos, Onitsha, Aba

The National Agency for Food and Drug Administration and Control (NAFDAC) has revealed that it generated N2.5 billion from enforcement operations conducted in major open drug markets across Lagos, Onitsha, and Aba.

Director-General of NAFDAC, Prof. Mojisola Adeyeye, disclosed this on Wednesday during an appearance before the House of Representatives Committee on Food and Drug Administration and Control.

According to her, the revenue was primarily sourced from fines imposed on traders caught selling fake, expired, or unregistered pharmaceutical products. She emphasized that the agency remains committed to safeguarding public health and eliminating substandard drugs from circulation.

“The total amount collected was about N2.5billion,” Mrs Adeyeye told the lawmakers, clarifying that the charges were deposited directly into NAFDAC’s official account.

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She explained that of the generated fund, N996 million was spent on the enforcement operations, N1.175 billion went into regulatory expenses, and an additional N159 million was borrowed from an existing donor grant to cover shortfalls. After all deductions, only about N206 million remained.

“For the operation in the three markets – Lagos, Onitsha, and Aba, about N996 million was spent. We had to borrow N159 million from an existing grant because we didn’t have funds. In addition, regulatory expenses amounted to N1.175 billion. So, out of the N2.537 billion, we have only about N207 million left in the account,” she said.

The operations, according to her, which lasted up to four weeks in some locations, involved over 1,300 security personnel and uncovered large-scale violations, including the sale of banned substances such as Tramadol and other unsafe medicines.

Mrs Adeyeye, a professor, said most shop owners were in breach of Good Distribution and Storage Practices (GDSP), with fines ranging between N500,000 and N2 million depending on the severity of violations.
However, she expressed concern over what she described as “crippling” revenue restrictions, noting that the agency’s ability to sustain such operations is under threat.

According to her, while the agency had about N19 billion in its accounts at the end of 2023, only N4.5 billion was made accessible after N9 billion was removed and other deductions followed.

Mrs Adeyeye described the agency’s recent raid in Kano as a unique case, anchored on a court judgment rather than an internal enforcement plan.

She said the February 2024 operation was ordered by the Federal High Court, which directed all open drug market traders to relocate to the newly built Coordinated Wholesale Centre (CWC), the Kanawa Pharmaceutical Centre.

Unlike the southern market raids, no administrative charges or fines were collected in Kano. The agency focused solely on enforcing the court’s directive.

She said, “The traders initially resisted. There were real threats of violence. But we had no choice; we had to act. They padlocked their shops but we bought bigger padlocks and sealed them. To reopen, they had to agree to relocate.”

Mrs Adeyeye said NAFDAC had no funds at the time, as its accounts had just been reopened with a zero balance at the start of 2024. Yet the agency proceeded with relocating over 1,300 shops as ordered.

She also noted that Kano is the only state that has completed its CWC, even before she assumed office. “In the South, Lagos, Onitsha, Aba, there was no CWC. So our approach was different. We had time to prepare, inspect, and charge offenders according to their violations,” she explained.

Lawmakers question revenue management, regional disparities
Some lawmakers, however, questioned why the agency collected fines in the South but not in Kano.

In response, Mrs Adeyeye defended the agency’s actions, citing the urgency of the court order and volatile security conditions during the operation.

“In retrospect, yes, we could have done more inspections or collected administrative fees but that wasn’t feasible under the circumstances. Even a legal officer was almost killed on the court premises. It was a volatile situation,” she said.

On the concerns about the financial transparency of the agency, the Director of Finance and Accounts, Adeniji Nma, revealed that the Office of the Accountant-General of the Federation (OAGF) had reclassified NAFDAC as a revenue-generating agency, leading to aggressive deductions from the agency’s income.

She disclosed that the OAGF began deducting 50 per cent of all revenue inflows in 2024, and in 2025, that figure was raised to 75 per cent.

“There was an order from OAGF. They have recruited us as a revenue-generating agency and we have been writing several letters that we are not actually a revenue-generating agency, we are just for the health of the nation.

“Part of our money is tied to our clients. When they pay for inspections or one service or the other, it is tied directly to that service. But up till now, they have not yet approved our exemption.

“In 2024, they began taking 50 per cent of every revenue generated by NAFDAC automatically. When money drops from a client, half goes straight to the treasury. Suddenly, in 2025, we found out they are now taking up to 75 per cent of every inflow. Because of it, we find it difficult to do most of our operations,” she stated.

Following the presentations, a member of the committee, Emeka Idu (LP, Anambra), requested a detailed breakdown of the revenue generated from each of the markets where fines were collected.

NAFDAC officials, however, were unable to provide that data during the hearing. The Committee Chair, Regina Akume (APC, Benue), expressed dissatisfaction with the agency’s submission.

“The work has not been completed. I would like to give you a chance to go back and work on this. How much were you paid into the account? What goes in and what goes out? We haven’t talked about that,” she said.

The committee directed the agency to return with a full, location-by-location account of how the N2.5 billion generated from the operations was collected and expended.