Senate Finance Committee Issues Budget Sanctions Warning
The Senate Finance Committee has called upon the National Agency for Food and Drug Administration and Control (NAFDAC), the Accountant General of the Federation (OAGF), and the Fiscal Responsibility Committee (FRC) to resolve inconsistencies in revenue deductions made by NAFDAC. This directive was issued on Wednesday during an ongoing investigation into the internal revenue transfers and operating surplus reported by ministries, departments, and agencies (MDAs) for the financial years 2023-2025.
Ongoing Investigation into Revenue Discrepancies
Committee Chairman Sani Musa emphasized that adjustments were necessary due to conflicting figures presented by NAFDAC and the FRC regarding deductions from NAFDAC’s operating surplus. During the session, NAFDAC reported generating N18.73 billion in 2023, followed by N29.85 billion in 2024 and a projected N39.6 billion in 2025, highlighting a consistent rise in internal revenue.
Impact of Treasury Single Account Policy
NAFDAC Director-General Mojisola Adeyeye explained that from 2007 to 2023, the agency had remitted approximately N3.9 billion as operating surplus. However, he noted that the Treasury Single Account (TSA) policy implemented in January 2024 significantly affected NAFDAC’s financial operations. The TSA’s zero balance arrangement requires deductions from NAFDAC’s revenues before the agency has access to funds, complicating its ability to meet certain operational obligations.
Challenges in Fund Reimbursement
Adeyeye revealed that nearly N21 billion has been directly deducted from customers’ payments for regulated services, yet only N13 billion has been refunded. He added that President Bola Tinubu approved the refund and the removal of NAFDAC from the list of revenue-generating institutions in August 2025, though these approvals have yet to be implemented fully.
Push for Collaboration and Accountability
In response to these financial challenges, Musa urged government agencies to submit the necessary presidential approvals to facilitate legislative action. The Committee has also tasked the Auditor General with appointing a senior official to collaborate with both the FRC and NAFDAC to reconcile financial accounts.
Insights into Alternative Medicine Research
During the session, committee member Natasha Akpoti Uduagan highlighted Nigeria’s wealth of medicinal plants, urging NAFDAC to boost its research efforts in alternative medicine. In reply, Adeyeye affirmed that a regulatory framework for traditional medicine exists, yet insufficient funding hampers the necessary clinical trials for international approval. He also refuted claims regarding the efficacy of available medicines in Nigeria, asserting that mandatory bioequivalence studies have enhanced quality assurance.
Financial Scrutiny of Ogun-Osun River Basin Development Authority
The committee also scrutinized the Ogun-Osun River Basin Development Authority (OORBDA) due to its failure to submit audited financial statements since 2022 and unresolved financial obligations. OORBDA’s Acting Managing Director, Ayo Oyano, reported generating N72.76 million in 2023, with a remittance of N18.19 million, which represents only 25% of its revenue. The committee stressed that as a fully funded federal agency, OORBDA is legally obligated to remit 100% of its internally generated revenue to the Consolidated Revenue Fund.
Musa reminded OORBDA that the agency’s personnel and operational costs are covered by annual expenditures approved by Parliament, negating any legal basis for retaining internally generated revenue. The committee firmly maintained that all proceeds from fully funded entities must be deposited into a Treasury account before being transferred to the Consolidated Revenue Fund. The committee has directed OORBDA to reconcile its accounts with the Auditor General and the Fiscal Responsibility Committee within a two-week timeframe.
