Winning the Drug War through Sound Corporate Governance

Onitsha, Aba, and Idumota drug market raids by the National Agency for Food and Drug Administration and Control (NAFDAC) in its fight against drug abuse and illicit drug trade bring to fore again the need to win this seemingly unending drug war in Nigeria. The rise in drug consumption, production, and trafficking has led to serious health, economic, and security concerns. 

While law enforcement plays a key role in tackling this issue, corporate governance offers a structured approach to addressing the root causes and mitigating the risks associated with the drug problem. Strengthening governance within pharmaceutical companies, regulatory agencies, and public institutions can enhance accountability, transparency, and efficiency in the war.

In this fight, effective governance can ensure that policies are well-conceived and properly implemented. The pharmaceutical sector, law enforcement agencies, and policymakers must adopt governance practices that promote integrity and regulatory compliance.

One of the major challenges is the high level of counterfeit drugs in circulation. Weak regulatory oversight and poor enforcement mechanisms have allowed substandard and falsified medicines to flood the market. Strengthening corporate governance in regulatory agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC) and the National Drug Law Enforcement Agency (NDLEA) is essential in ensuring that laws are upheld and offenders face appropriate consequences.

Nigeria’s pharmaceutical industry is expected to grow significantly in the coming years, with an estimated worth of $4 billion by 2026 according to Oxford Business Group. However, this growth is hindered by a heavy reliance on imports, with a significant percentage of medicines coming from other countries. The industry also faces challenges in maintaining quality standards, with many companies struggling to meet international regulations.

To address these issues, strong corporate governance frameworks should be implemented to enhance accountability and ensure that companies adhere to ethical practices. Board members of pharmaceutical companies must prioritise quality control, ethical business practices, and corporate social responsibility. Companies should establish internal audit mechanisms to track compliance with local and international drug safety standards.

Regulatory bodies must also enforce stringent compliance measures. Increasing transparency in drug approval processes and ensuring rigorous monitoring, they can minimise the entry of counterfeit drugs into the market. Public-private partnerships can be leveraged to build local pharmaceutical production capacity, reducing reliance on imports and improving drug safety.

Nigeria has become a major transit point and producer of illicit drugs, particularly cannabis and methamphetamine. This has led to an increase in organised crime, money laundering, and drug-related violence. To combat this issue, governance structures within law enforcement agencies need to be strengthened.

The NDLEA plays a key role in controlling efforts but faces several challenges, including corruption, inadequate funding, and logistical constraints. Addressing these challenges requires governance reforms that ensure accountability and efficiency. For instance, adopting technology-driven tracking systems can enhance transparency in drug enforcement activities. Implementing independent oversight bodies can reduce corruption and improve operational effectiveness.

The fight against drugs cannot be won by government agencies alone. Private sector organisations, including pharmaceutical companies, financial institutions, and technology firms, must ensure that governance structures support effective drug control measures.

Financial institutions, for instance, can implement stringent anti-money laundering (AML) protocols to track and block illicit financial flows associated with drug trade. Technology firms can develop digital solutions for monitoring drug distribution networks, reducing the risk of diversion into illicit markets. Encouraging whistleblower policies in corporate and government institutions can further enhance accountability and prevent corruption.

Drug abuse in Nigeria is largely driven by socio-economic factors such as unemployment, poverty, and lack of access to quality healthcare. Governance structures must focus on long-term strategies that address these underlying causes. Investing in education, vocational training, and job creation can reduce the vulnerability of young people to drug abuse and criminal activities.

Corporate organisations can also contribute through social responsibility initiatives that focus on rehabilitation and reintegration of drug users into society. Establishing well-governed rehabilitation centres, with clear policies on treatment and reintegration, can support recovery and prevent relapse.

A well-structured legal and policy system is essential in ensuring the success of drug control measures. Nigeria’s National Drug Control Master Plan (NDCMP) 2021–2025 provides a roadmap for reducing drug supply and demand while improving access to controlled medicines for medical purposes. However, the implementation of this plan requires strong governance mechanisms.

Laws regulating the pharmaceutical industry and drug enforcement must be consistently reviewed and updated to address emerging challenges. Clear accountability structures must be established to ensure that regulatory agencies, law enforcement, and private sector players operate within ethical and legal boundaries.

Winning the war against drugs in Nigeria requires more than law enforcement—it demands sound corporate governance across all sectors involved. Strengthening governance in regulatory agencies, pharmaceutical companies, law enforcement, and public institutions can improve transparency, accountability, and efficiency in tackling drug-related challenges. 

Collaboration between the government, private sector, and civil society is key to developing sustainable solutions that address both the supply and demand sides of the drug problem. With strong ethical leadership, regulatory compliance, and socio-economic interventions, our nation can make meaningful progress in its fight against drug abuse and illicit trade.


Research & Advocacy Department,

Chartered Institute of Directors (CIoD)

28, Olawale Edun Road (Formerly Cameron Road), Ikoyi, Lagos.


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