Senate Demands Account Reconciliation from NAFDAC, Orders Agencies to Remit Funds or Face Sanctions

The Nigerian Senate Committee on Finance has intensified its scrutiny of federal revenue-generating agencies, ordering the National Agency for Food and Drug Administration and Control (NAFDAC) and others to reconcile financial discrepancies. The committee also threatened budget sanctions against the Ogun-Osun River Basin Development Authority if it fails to regularize its financial records within 14 days.

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funds legitimately belonging to government agencies should be released promptly after all statutory deductions had

These directives stem from an investigative hearing focused on the remittance of internally generated revenue and operating surplus by Ministries, Departments, and Agencies (MDAs) for the 2023 to 2025 financial years. The Senate is particularly concerned about revenue leakages and the failure of some government bodies to remit funds fully to the Consolidated Revenue Fund, as mandated by the Fiscal Responsibility Act.

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although the agency had remitted about ₦3.9bn as operating surplus between 2007 and 2023, changes introduced under the Treasury Single Account policy in January 2024 had significantly affected its finances.

Senator Sani Musa, chairman of the committee, highlighted conflicting figures between NAFDAC and the Fiscal Responsibility Commission regarding deductions from NAFDAC's operating surplus. NAFDAC reported significant revenue generation but explained that the Treasury Single Account (TSA) policy, particularly a zero-balance arrangement implemented in January 2024, has impacted its finances. The agency stated that substantial deductions from client payments for regulatory services, totaling approximately ₦21 billion, have not been fully refunded, with only ₦13 billion returned so far.

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about ₦21bn deducted directly from payments made by clients for regulatory services had yet to be fully refunded, noting that only ₦13bn had so far been returned.

NAFDAC's Director-General, Prof. Mojisola Adeyeye, noted that President Bola Tinubu had approved the refund of these deductions and the removal of NAFDAC from the list of revenue-generating agencies in August 2025. However, these approvals are yet to be fully implemented. Senator Musa urged the agency to submit the presidential approval to the committee to facilitate legislative action. The committee subsequently directed the Office of the Accountant-General of the Federation to nominate a senior official to collaborate with the Fiscal Responsibility Commission and NAFDAC in reconciling the agency's accounts. Musa acknowledged NAFDAC's improved revenue performance despite TSA challenges but stressed the importance of prompt release of funds after statutory deductions.

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President Bola Tinubu approved the refund of the deductions in August 2025 and also approved the removal of NAFDAC from the list of revenue-generating agencies, although the approvals were yet to be fully implemented.