Juxtaposing Regulation Theory with Agency Behaviour: Understanding the Role of the Regulator in the Developing World with Evidences from Nigeria

This paper explores the interface between the theory and practice of social regulation, particularly in developing or Third World Countries. Using two popular theories of regulation, the paper builds upon the framework of ecology of administration to argue that social regulatory agencies in developing countries may acquire unique characteristics that not only affect their modus operandi, but also midwife their outcomes and assessment in ways that differ significantly from the experiences of their contemporaries in the developed world. The paper finds evidences for these by examining the activities of two agencies in Nigeria: (1) the National Agency for Food and Drug Administration and Control (NAFDAC), an agency that is responsible for the regulation of food, drugs, chemicals, confectionery, cosmetics and related items; and (2)the Economic and Financial Crimes Commission (EFCC) that is responsible for the prevention of financial crimes, corruption and arraigning financial criminals in Nigeria. Among other recommendations to improve the outcomes of regulation in developing countries, the paper advocates for the creation of improved regulatory environment by government, strengthening of political commitment to the cause of regulation; government’s avoidance of playing ‘regulatory games’ in order to guarantee the regulatory freedom of agencies; improved funding; functional communication amongst stakeholders in regulation; and the use of new social heuristics that combines legalism with social realities in order to boost regulatory compliance amongst the regulated. Keywords: Regulation Theory, Agency Behaviour, Role, Regulato