The Alliance for Economic Research and Ethics has warned that Nigeria’s growing number of ministries, departments and agencies (MDAs) is hurting businesses, discouraging investment and weakening the economy, calling for the urgent implementation of long-delayed public sector reforms.
The group raised the concerns while reacting to a recent sealing of three soya milk factories in Awada, Onitsha, by the Federal Competition and Consumer Protection Commission (FCCPC) over the production of unsafe drinks.
While commending the FCCPC for protecting consumers, the Alliance argued that the enforcement exposed deeper structural problems within Nigeria’s regulatory system, where multiple agencies exercise overlapping powers over the same businesses.
According to the organisation, although the FCCPC acted within its legal powers under the Federal Competition and Consumer Protection Act (FCCPA) 2018, the law also requires the commission to work with relevant sector regulators.
It questioned why agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON) were not involved in the operation.
Businesses Face Compliance Burden
The Alliance said manufacturers of dairy products are often required to deal with several regulators, including NAFDAC, SON, the FCCPC, state environmental agencies, local governments and, in some cases, the Nigeria Agricultural Quarantine Service, creating unnecessary compliance costs and delays.
It argued that the overlap has turned regulation into a burden for businesses instead of a tool for consumer protection.
It said, “When three different federal agencies have the statutory power to seal a single factory, we are no longer talking about regulation. We are talking about an administrative circus where the performer is the private sector, and the audience is watching them collapse under the weight of compliance.”
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The organisation said the problem reflects a much broader challenge within the public sector.
It recalled that the Oronsaye Committee Report submitted in 2012 identified 541 statutory federal agencies and recommended reducing them to 163 through mergers, abolitions and restructuring, with projected savings of N862 billion between 2012 and 2015.
However, it said the number of agencies has continued to increase.
“Fast forward to 2026. Rather than shrinking, the beast has grown. Nigeria now groans under the weight of over 900 MDAs. The Oronsaye Report, despite a 2023 approval by the Tinubu administration for selective implementation, remains largely a victim of bureaucratic self-preservation and political patronage.”
The Alliance added that many regulatory agencies have shifted from oversight to revenue generation, citing N658 billion deducted as cost of collection from Federation revenue in the first half of 2025 by agencies including the Federal Inland Revenue Service, the Nigeria Customs Service and the Nigerian Upstream Petroleum Regulatory Commission.
“This is not regulation. This is legalised extortion,” it said.
Seeks Oronsaye Report Implementation, Merger of Food Regulators
The Alliance warned that excessive regulation is making it harder for businesses to operate within the formal economy, pushing many smaller operators into the informal sector where they remain outside effective regulatory oversight.
It argued that the country’s current regulatory framework is inconsistent with the National Development Plan’s objective of relying on the private sector to drive investment and economic growth.
To address the challenge, the group urged the Federal Government to begin implementing key recommendations of the Oronsaye Report without further delay.
It called for the consolidation of food safety regulation by merging the food-related responsibilities of NAFDAC, SON and the FCCPC into a single authority with clearly defined powers to eliminate overlapping functions.
The Alliance also recommended scrapping or merging redundant agencies, conducting a comprehensive review of overlapping regulatory responsibilities across sectors, introducing mandatory periodic reviews of government agencies and funding regulators through government appropriations instead of fees and fines collected from businesses.
“The private sector is bleeding. Investors are fleeing. Informal economic activity is exploding. And yet, we continue to add more agencies, more fees, more complexity. This is not governance. This is slow-motion economic suicide,” the group said.
It urged policymakers to move beyond committees and reports and begin implementing long-standing reforms to reduce bureaucracy, improve regulatory efficiency and create a more business-friendly environment capable of supporting investment, job creation and economic growth.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X