The National Agency for Food and Drug Administration and Control (NAFDAC) has introduced strategies aimed at supporting micro, small, and medium enterprises (MSMEs) in navigating the temporary economic challenges resulting from the fuel subsidy removal.
Mojisola Adeyeye, the agency’s Director-General, shared this information in a statement released to journalists on Monday in Abuja through NAFDAC media consultant Olusayo Akintola.
Professor Adeyeye highlighted that the strategies implemented by NAFDAC are specifically tailored to assist MSMEs in coping with the economic impact of the fuel subsidy removal. Among these initiatives, the reduction of processing fees for locally made goods stands out as a direct and tangible way to support businesses. By lightening the financial load associated with regulatory processes, NAFDAC aims to enable MSMEs to continue operating smoothly and contribute to economic growth.
The decision to reduce processing fees for locally made goods underscores NAFDAC’s commitment to empowering local businesses. MSMEs play a crucial role in the economic development of any nation, and their resilience is vital during times of economic transition. NAFDAC’s strategic move not only acknowledges the challenges faced by these enterprises but actively addresses them, fostering an environment where local businesses can thrive despite external economic pressures.
The removal of fuel subsidies has been a contentious issue, but NAFDAC’s response demonstrates the agency’s dedication to supporting businesses during challenging times. MSMEs often operate on tight budgets, and any increase in operational costs can have a cascading effect on their viability. By reducing processing fees, NAFDAC is directly intervening to ensure that local businesses can navigate the economic challenges more effectively.
NAFDAC’s decision to reduce processing fees for locally made goods creates a win-win situation for both the regulatory agency and MSMEs. While businesses benefit from reduced financial constraints, NAFDAC ensures that the safety and quality standards of locally produced goods are maintained. This collaborative effort between the regulatory body and businesses reflects a holistic approach to economic challenges, prioritizing sustainability and growth.
Additionally, the agency has revised downward the current administrative charges for late renewal of NAFDAC-regulated products, aiming to create a more conducive investment climate and promptly responding to the prevailing economic realities.
“This translates to a 65 percent decrease in processing fees for the renewal of registration for locally manufactured products (which will be N44,200),” she said.
This is against what is currently charged and 45 percent of the processing fee for foreign products (which will be $ 450) as against what is currently charged.
She noted, “In addition, the agency has also granted a 10 percent review of tariff structure for facility and inspection fees for Special Economic Zones as businesses across the world confront the disruptions caused by the global economic meltdown.
“NAFDAC will continue to adopt and implement practical measures to ensure that the projected growth in the MSMEs sector is not seriously affected by the development.”
She explained that the response of the agency was not just “to give succour and assistance to existing MSMEs, but also ensure that there is a practical and active fillip to new MSMEs.
This, the NAFDAC boss said will ensure that the growth of the sector is not discouraged by the current economic trauma.
She said it was the right moment for the agency and that NAFDAC, as a regulatory body, was prepared to back MSMEs and other businesses that were ready for the innovative and interesting times ahead.
