Nigeria's Bloated Public Sector: Dele Oye Blows Whistle on 900 MDAs

The proliferation of Ministries, Departments, and Agencies (MDAs) in Nigeria has become a major burden on the economy, according to Dele Oye, the former National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). Oye, who is also the Chairman of the Alliance for Economic Research and Ethics (AERE), stated that the over 900 MDAs in the country are costing the economy a whopping N862 billion. He warned that this trend is scaring off investors and stifling economic growth. The Steve Oronsaye Presidential Committee on the Restructuring and Rationalisation of Federal Government Parastatals, Commissions, and Agencies, which was inaugurated in 2012, had recommended the merger, abolition, and restructuring of several agencies, with projected savings of about N862 billion between 2012 and 2015. However, the implementation of the report has been slow, and the number of federal agencies has continued to rise. Oye argued that the duplication of regulatory functions and the increase in compliance costs for businesses are major consequences of the proliferation of MDAs. He cited the example of a milk factory that was sealed by the Federal Competition and Consumer Protection Commission (FCCPC), highlighting the inefficiencies created by multiple regulators exercising similar powers. According to Oye, manufacturers are often required to comply with the regulatory requirements of multiple agencies, including the FCCPC, the National Agency for Food and Drug Administration and Control (NAFDAC), the Standards Organisation of Nigeria (SON), and environmental agencies, among others. This, he said, has created a bureaucratic nightmare that is pushing many small businesses into the informal sector. Oye further stated that many government agencies have shifted their focus from regulatory responsibilities to revenue generation, creating a perverse incentive structure that turns regulators into predators. He noted that the cost of revenue collection by government agencies has become a major burden on the economy, with N658 billion deducted as the cost of revenue collection in the first half of 2025. Oye maintained that the existing regulatory framework is undermining the National Development Plan 2021-2025, which acknowledges that over 85 per cent of the country's investment requirements must come from the private sector. He called on the federal government to fully implement the Oronsaye Report, insisting that the country already possesses a credible blueprint for reducing the cost of governance and creating a more efficient regulatory environment. As Oye put it, 'The question is not whether reform is possible. The question is whether Nigeria's leaders have the courage to pursue it.' He warned that the failure to reform the public sector would have dire consequences, including the continued flight of investors and the explosion of informal economic activity.