Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
A bill seeking to compel non-governmental organisations to disclose all foreign funds and humanitarian aid has ignited a fierce confrontation between the Nigerian Senate and civil society organisations, with lawmakers defending the proposed legislation as a necessary tool for accountability and national security, while activists warn it could cripple humanitarian operations and further shrink the country's already embattled civic space. The bill, formally titled "A Bill for an Act to Provide for the Regulation, Coordination, Transparency and Disclosure of Foreign Aid, Grants and Donations Received in the Federal Republic of Nigeria; to Ensure Accountability in the Utilization of Such Aid; and for Related Matters, 2026 (SB. 1034)," was introduced in the Senate on May 6, 2026, by Senator Ibrahim Hassan Dankwambo (PDP, Gombe North) and passed its second reading on July 22, 2026. It is currently before the Senate Committees on National Planning and Economic Development and Finance for further legislative work.
At the heart of the controversy is the bill's proposal to establish a Foreign Aid Regulatory Commission with sweeping powers to monitor, inspect, audit, and sanction organisations receiving foreign assistance. Under the proposed law, every entity receiving foreign aid would be required to register with the commission within 30 days of receipt. Section 7 of the bill mandates recipients to disclose the source and amount of aid received, while Section 11 further requires that all foreign-funded activities "align" with national development priorities, a clause critics say is dangerously vague and could be used to arbitrarily delegitimise the work of civic actors. The bill also criminalises non-disclosure and imposes severe penalties, including fines of at least N20 million and potential suspension or revocation of operating licences.
For the Senate, the bill is a matter of national security and fiscal accountability. Lawmakers have argued that billions of naira in foreign aid flow into Nigeria through NGOs and other organisations without adequate scrutiny, posing potential risks of money laundering, terrorist financing, and a misalignment with national development priorities. They insist the legislation is designed to ensure that foreign assistance is tracked, coordinated, and utilised in a manner that benefits the country rather than serving opaque or nefarious purposes. This is the fourth time the National Assembly has attempted to introduce legislation to regulate the NGO sector, with similar proposals in 2016, 2017, and 2019/2020 having stalled at the committee stage following sustained opposition.
However, a broad coalition of civil society organisations, human rights groups, and media bodies has pushed back forcefully, warning that the bill constitutes a dangerous overreach that could suffocate the independent voices that hold the government accountable. The Action Group on Free Civic Space (AGFCS), a coalition of CSOs, has called on the National Assembly to halt the bill, arguing that it duplicates existing regulatory frameworks, including the Companies and Allied Matters Act (CAMA) 2020, which already requires incorporated non-profits to file annual reports and undergo audits. "The introduction of another law covering substantially similar areas raises concerns about regulatory duplication and overregulation of the NGO sector," the coalition stated. They also cited the Financial Action Task Force's Recommendation 8, which requires governments to address terrorist-financing risks involving non-profit organisations without unnecessarily disrupting legitimate charitable activities.
The Socio-Economic Rights and Accountability Project (SERAP) and the Nigerian Guild of Editors have also joined the chorus of opposition, threatening legal action and demanding the immediate withdrawal of the bill. In a joint open letter, they argued that the bill, if passed, could have far-reaching consequences for independent media, religious organisations, and humanitarian bodies, describing it as a threat to the constitutional rights to freedom of expression and association. Human Rights Watch has also urged the National Assembly to reject the legislation, warning that it could turn legitimate civil society work into a target of state surveillance.
The bill has also raised concerns over its potential impact on humanitarian and development services. Oyebisi Babatunde Oluseyi, executive director of the Nigeria Network of NGOs, warned that excessive compliance requirements could slow the delivery of essential services, increase operational costs for small organisations, and ultimately affect the education, health, and community services received by ordinary Nigerians. He urged lawmakers to review existing legislation and strengthen institutions like the Corporate Affairs Commission and the Nigerian Financial Intelligence Unit, rather than creating new overlapping structures.
Despite the opposition, the Senate has shown no indication of backing down, with the bill now awaiting a public hearing where key stakeholders will be invited to examine its provisions. But with the 2027 general elections approaching, the bill has become more than a regulatory debate; it is now a litmus test for the Tinubu administration's commitment to the civic space that has been shrinking steadily in recent years. As one civil society leader put it, "Any regulation that affects the ability of non-profits to access and deploy resources could ultimately affect the services received by ordinary Nigerians". The question now is whether the government will heed the warnings of the civic community or push ahead with a law that could fundamentally reshape the landscape of civil society in Nigeria.
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