Summary：**Senate Warns of Budget Sanctions, Demands NAFDAC and Agencies Balance Books****Introduction** The

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**Senate Warns of Budget Sanctions, Demands NAFDAC and Agencies Balance Books**

**Introduction**
The Senate Committee on Finance has escalated its pressure on federal agencies, warning that failure to reconcile financial records could trigger budget sanctions. The move targets the National Agency for Food and Drug Administration and Control (NAFDAC) and several other ministries, departments and agencies (MDAs) amid mounting concerns over revenue leakages and unaccounted expenditures.

**Key Developments**
During a plenary session on Tuesday, committee chairman Senator Ibrahim Musa announced that the Senate had issued a formal directive to NAFDAC, the Federal Inland Revenue Service (FIRS), and the Nigerian Customs Service to submit audited accounts within 30 days. The ultimatum follows a series of audits that revealed discrepancies between projected revenues and actual collections, particularly in the pharmaceutical and food safety sectors. Senator Musa warned that non‑compliance would attract punitive measures, including withholding of quarterly allocations and possible referral to the Economic and Financial Crimes Commission (EFCC) for further investigation.

The committee also cited a recent report from the Office of the Auditor‑General, which estimated that leakages in agency revenues could exceed ₦150 billion annually if left unchecked. Lawmakers argued that such losses undermine the national budget’s credibility and impede funding for critical infrastructure projects.

**Industry Analysis**
Analysts say the Senate’s stance reflects a broader push for fiscal discipline in Nigeria’s public sector. NAFDAC, tasked with regulating food, drugs, cosmetics and medical devices, relies heavily on fees for product registration, import permits and laboratory testing. Industry stakeholders note that delayed remittances of these fees often stem from bureaucratic bottlenecks and outdated accounting systems.

A senior fiscal policy expert at the Nigerian Institute of Social and Economic Research (NISER) observed that while the threat of sanctions may spur immediate compliance, sustainable reform will require investment in integrated financial management tools and capacity building for agency finance units. Without such upgrades, the cycle of audit findings and remedial directives is likely to persist.

**Future Outlook**
If NAFDAC and the other cited agencies meet the 30‑day deadline, the Senate may consider a phased approach to budget releases, tying tranches to verified performance metrics. Conversely, continued shortfalls could trigger a review of the agencies’ enabling statutes, potentially leading to stricter oversight or even restructuring.

Market watchers anticipate that the heightened scrutiny will encourage greater transparency in revenue