Senate Orders NAFDAC, Ogun-Osun River Basin to Reconcile Accounts, Warns of Sanctions

• Directs OAGF, FRC to resolve revenue discrepancies over NAFDAC 

•Gives OORBDA 14 days to regularise records, threatens budget freeze

Sunday Aborisade in Abuja

The Senate Committee on Finance on Wednesday intensified its oversight of federal revenue-generating agencies by ordering the National Agency for Food and Drug Administration and Control (NAFDAC), the Office of the Accountant-General of the Federation (OAGF) and the Fiscal Responsibility Commission (FRC) to reconcile discrepancies in the agency’s revenue deductions.

The panel subsequently gave the Ogun-Osun River Basin Development Authority (OORBDA) a 14-day ultimatum to regularise its financial records or face sanctions, including the suspension of budget releases.

The directives were issued during the committee’s ongoing investigation into the remittance of internally generated revenue (IGR) and operating surplus by Ministries, Departments and Agencies (MDAs) into the Consolidated Revenue Fund (CRF) for the 2023-2025 financial years.

Chairman of the committee, Senator Sani Musa, said the reconciliation became necessary after conflicting figures emerged between NAFDAC and the Fiscal Responsibility Commission over deductions from the agency’s operating surplus.

Figures presented to the committee showed that NAFDAC generated N18.73 billion in 2023, N29.85 billion in 2024 and N39.6 billion in 2025, reflecting a steady increase in its internally generated revenue.

NAFDAC Director-General, Prof. Mojisola Adeyeye, told lawmakers that the agency had remitted about N3.9 billion as operating surplus between 2007 and 2023 before changes to the Treasury Single Account (TSA) operations created financial challenges.

She explained that the introduction of a zero-balance TSA arrangement in January 2024 resulted in deductions from the agency’s revenue before it could access the funds, making it difficult to meet its financial obligations.

According to her, about N21 billion deducted directly from payments made by clients for regulatory services had not been fully refunded, with only N13 billion so far returned.

She disclosed that President Bola Tinubu approved the refund of the deductions in August 2025 and also approved NAFDAC’s removal from the list of revenue-generating agencies, although both directives were yet to be fully implemented.

Musa advised the agency to submit the presidential approval to the committee to enable lawmakers take the necessary legislative action.

The committee subsequently directed the Accountant-General’s Office to nominate a senior official to work with the Fiscal Responsibility Commission and NAFDAC to reconcile the agency’s accounts.

He insisted that while all revenues due to the Federal Government must be remitted, funds legitimately belonging to agencies should be released promptly to enable them perform their statutory responsibilities.

Commending NAFDAC’s financial performance, Musa said the agency had recorded significant improvements in revenue generation despite its operational challenges.

During the hearing, Senator Natasha Akpoti-Uduaghan urged NAFDAC to strengthen research into alternative medicine using Nigeria’s abundant medicinal plants.

Responding, Adeyeye said the agency already had a framework for regulating traditional medicines but lacked adequate funding for the clinical trials needed for wider acceptance.

She also dismissed claims that medicines in Nigeria had only 30 per cent efficacy, insisting that bioequivalence studies had become mandatory to ensure compliance with international standards.

The committee also scrutinised the financial records of the Ogun-Osun River Basin Development Authority after the Fiscal Responsibility Commission disclosed that the agency had failed to submit audited financial statements since 2022 and had unresolved liabilities.

Acting Managing Director of the authority, Mr. Ayo Oyano, told lawmakers that the agency generated N72.755 million in 2023 and remitted N18.188 million, representing 25 per cent of the revenue.

However, the Fiscal Responsibility Commission maintained that, as a fully funded federal agency, OORBDA was legally required to remit 100 per cent of its internally generated revenue into the Consolidated Revenue Fund.

The commission also informed the committee that the authority had not submitted audited financial statements for 2023, 2024 and 2025 and still had an outstanding liability of N71.5 million dating back to 2022.

Musa reminded the agency that its personnel, overhead and capital expenditures were already financed through annual appropriations approved by the National Assembly and therefore it had no legal basis to retain any revenue generated.

Although Oyano argued that part of the revenue was used to maintain tractors and other equipment deployed to support farmers, the committee rejected the explanation, insisting that all revenues collected by fully funded government agencies must first be paid into the Treasury Single Account before being transferred to the Consolidated Revenue Fund.

Senator Aliyu Wadada also maintained that revenues collected from services rendered by the authority belonged to the Federal Government and could not be spent without lawful appropriation.

The Fiscal Responsibility Commission supported the committee’s position, explaining that agencies could retain internally generated revenue only under exceptional circumstances and with appropriate government approval.

Following the discrepancies, the committee directed OORBDA to reconcile its accounts with the Accountant-General’s Office and the Fiscal Responsibility Commission within 14 days.

Musa warned that failure to comply would attract legislative sanctions, including the suspension of budget releases.

He added that the ongoing investigation was part of the Senate’s constitutional responsibility to ensure transparency, accountability and strict compliance with statutory revenue remittance obligations by all government agencies.

He also warned that the Senate would invoke its constitutional powers against agencies that failed to honour its invitations or account for public funds.