Former president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has raised concerns over what he describes as punitive and investment-discouraging practices by regulatory agencies in Nigeria, particularly the National Agency for Food and Drug Administration and Control (NAFDAC).
Speaking on The Coffee Table podcast hosted by Naijaonpoint, Oye alleged that NAFDAC now requires companies to bear the financial burden of enforcement actions taken against them, including raids and factory closures.
“Do you know in NAFDAC now, you pay them when they raid you? Go and check. When they raid you, you pay for the cost of raiding you. I can show you,” Oye said.
“You pay if they come to seal up your factory. You now pay for the police, pay for everything. This is how ridiculous these things are. I think all of them are playing to the gallery.”
Oye argued that such practices are symptomatic of a broader trend in which government agencies prioritize revenue generation over economic development and investor support.
He claimed that regulatory bodies are increasingly focused on public image, aiming to appear proactive by making headlines rather than fostering a conducive business environment.
“There’s no aftercare after investment in Nigeria from any government agency,” he said. “They are only looking for funds, everyone.”
He further criticized the Federal Competition and Consumer Protection Commission (FCCPC), stating that while it oversees both public and private entities, government agencies themselves are rarely held accountable.
Oye recounted instances where enforcement actions resembled criminal raids, with officials allegedly seizing equipment and disrupting operations.
“If you see when they raided our factories, these guys come like they are doing a drug raid,” he said. “They seal up the factory, go away with computers, and turn the people to slaves in their own business. That is not the way to grow the economy.”
Oye also cited a controversial case involving Coca-Cola, where the company was reportedly asked to pay $150 million over an advertisement deemed misleading.
“The one that is even more ridiculous was Coca-Cola. They said that the advert they did was confusing Nigerians, so for that they should pay about $150 million. This is ridiculous. It doesn’t make sense.”
He traced the origins of such aggressive regulatory tactics to earlier actions against the tobacco industry, noting that the FCCPC had imposed a $100 million fine, followed by leadership changes within the agency.
Oye concluded by likening the situation to traffic enforcement, where officers are pressured to meet quotas, leading to arbitrary stops and fines.
“We also have another issue, the Financial Reporting Council, where they charge on gross. If you’re going to borrow money now to do your business, you have to pay part of the bank loan, capital into the Financial Reporting Council,” he added.
The report also projects that Nigeria’s national poverty rate could surge to 56% by 2027, underscoring the severity of the crisis in Africa’s largest economy.