Dele Oye: Nigeria’s Over 900 MDAs Costing Economy N862bn, Hurting Investment

Nigeria's economy is facing a significant financial drain due to an excessive number of government bodies, with over 900 Ministries, Departments, and Agencies (MDAs) imposing costs exceeding N862 billion annually. Dele Oye, former National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), is calling for the immediate implementation of the Oronsaye Report to address this issue.

Oye, who also chairs the Alliance for Economic Research and Ethics (AERE), highlighted that the continuous expansion of government agencies, despite calls for rationalization, has led to duplicated regulatory functions and increased compliance burdens for businesses. He pointed to the Oronsaye Presidential Committee's 2012 report, which recommended sweeping reforms and projected savings of approximately N862 billion between 2012 and 2015.

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In Nigeria, a manufacturer producing dairy products does not face one regulator; they face a constellation. NAFDAC demands product registration and facility inspection. SON demands standards compliance and certification. The FCCPC demands consumer protection compliance. Add the State Environmental Agency, Local Government trade licences and perhaps the Nigeria Agricultural Quarantine Service (NAQS), and you have a recipe for paralysis.

Despite the federal government approving aspects of the report in 2023, implementation has stalled, allowing the number of federal agencies to surpass 900. This situation discourages investment and deteriorates Nigeria's business environment. Oye argued that regulation has become a major obstacle for businesses, citing the recent sealing of three milk factories by the Federal Competition and Consumer Protection Commission (FCCPC) as an example of inefficiency stemming from multiple regulators with overlapping powers.

Manufacturers in Nigeria often face a complex web of regulatory requirements from various agencies, including NAFDAC, SON, FCCPC, environmental bodies, and local governments. This multiplicity of independent agencies creates unnecessary bureaucracy, inflates compliance costs, and pushes many small businesses into the informal sector. Oye likened the situation to the proverb "Too many cooks spoil the broth," emphasizing that when multiple federal agencies can shut down a single factory, it signifies a breakdown in effective regulation.

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The ancient wisdom captured in the proverb ‘Too many cooks spoil the broth’ has never been more apt. When three different federal agencies have the statutory power to seal a single factory, we are no longer talking about regulation. We are talking