Nigeria's 900 MDAs Cost Economy N862bn, Hurting Investment

Dele Oye, Chairman of the Alliance for Economic Research and Ethics, highlighted that Nigeria's over 900 Ministries, Departments, and Agencies (MDAs) are costing the economy N862 billion, which is detrimental to investment. He called on the federal government to immediately implement the Oronsaye report, which recommends significant reforms, including the merger and abolition of several agencies to save costs.

The report, initiated by Steve Oronsaye in 2012, aimed to rationalize the federal government’s parastatals and has seen limited implementation since its approval in 2023. Oye pointed out that the proliferation of agencies creates overlapping mandates and increases compliance costs for businesses, citing a recent incident where three milk factories in Onitsha were sealed by the FCCPC due to regulatory inefficiencies.

He noted that manufacturers often face simultaneous regulatory requirements from multiple agencies, which complicates compliance and raises costs, ultimately discouraging private sector investment in Nigeria.