A bill seeking to compel Non-Governmental Organisations (NGOs) operating in Nigeria to register all foreign aid and donor-funded projects with the government has passed second reading in the Senate.
The Senate President, Godswill Akpabio, announced the passage during Wednesday’s plenary after a majority of senators supported it through a voice vote.
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After the passage, the bill was referred to the Senate Committees on National Planning and Economic Development and Finance for public hearing. The committees were directed to report back within four weeks.
The Bill, sponsored by Ibrahim Dankwambo, the senator representing Gombe North Senatorial District, seeks to establish a National Donor Coordination Framework, make registration of all donor-funded projects compulsory, and create a national database of foreign assistance.
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It also proposes integrating donor-funded interventions into government budgets, mandating public disclosure of funding sources and project implementation details, and imposing sanctions for the diversion, misuse or non-registration of donor funds.
Leading the debate, Mr Dankwambo, a former Accountant-General of the Federation, said billions of naira in foreign aid are channeled to NGOs operating in Nigeria without adequate scrutiny of the sources of the funds or the purposes for which they are donated.
He said the lack of oversight poses serious national security risks and undermines public accountability.
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The senator noted that although Nigeria is a major recipient of grants, technical assistance, humanitarian support and concessional financing from bilateral and multilateral partners, the country’s foreign aid management system remains largely opaque.
He added that donor-funded projects are often scattered across ministries, departments and agencies, with many implemented outside the national budget framework, resulting in duplication, poor coordination and weak accountability.
Mr Dankwambo, a former governor of Gombe State, noted the proposed legislation would strengthen oversight of foreign aid received by NGOs and promote greater transparency and accountability.
NGOS in Nigeria
Nigeria hosts thousands of non-governmental organisations implementing projects funded by foreign governments, multilateral institutions, international charities and private foundations.
These donor-funded interventions span humanitarian relief, healthcare, education, agriculture, governance, climate change, human rights and poverty reduction.
While many of the projects are implemented in partnership with federal and state governments, others are carried out independently by local and international NGOs, particularly in conflict-affected states where humanitarian needs are high.
At present, NGOs are required to register with the Corporate Affairs Commission (CAC), while some also register with the Special Control Unit against Money Laundering (SCUML) under the Economic and Financial Crimes Commission (EFCC) to comply with anti-money laundering regulations.
However, there is no comprehensive law requiring NGOs to disclose all foreign donor-funded projects to the federal government or to integrate such interventions into the national budget. Information on donor-funded projects is often scattered across government agencies, donors and implementing organisations
Debate
Most senators who participated in the debate expressed support for the bill.
The Senate Chief Whip, Tahir Monguno (APC, Borno North), said many foreign donors channel financial assistance through NGOs without adequate scrutiny.
The Deputy Senate President, Barau Jibrin, observed that while foreign assistance received directly by the federal government is usually reflected in the national budget, substantial funds channelled to NGOs and state governments remain outside effective public oversight.
“We can’t tell what money goes into the coffers of NGOs. Fraudsters set up bogus, pseudo NGOs and collect money from there,” he said.
Adamu Aliero (APC, Kebbi Central) said stricter regulatory compliance would improve the utilisation of donor funds while enhancing the confidence of development partners through greater transparency and accountability.
Drawing from the oversight activities of the Senate Committee on Agriculture, Mr Aliero recalled instances where donor funds were received but their utilisation could not be satisfactorily accounted for.
He also urged that the legislation should expressly cover state governments in addition to NGOs to strengthen the National Assembly’s oversight responsibilities.
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Sani Musa (APC, Niger East) and chairman of the Senate Committee on Finance, said the proposed law would align Nigeria with global best practices while boosting donor confidence through improved transparency.
He warned that inadequate scrutiny of donor-funded activities could pose serious security risks.
“Most of the aids coming to so-called NGOs are not subjected to scrutiny. We have seen instances where such arrangements create security concerns because we do not know who is accounting for what. Is it insurgents taking money meant for victims,” Mr Musa queried.
He added that the legislation would also distinguish foreign investments from grants, thereby improving fiscal planning and policy coordination.
Adams Oshiomhole (APC, Edo North), said every donor fund entering Nigeria should be fully disclosed, documented and subjected to legislative oversight.
The former Edo governor called for mandatory disclosure of all resources transferred to NGOs and civil society organisations, backed by stiff sanctions for non-compliance.
In his remarks after the debate, Mr Akpabio warned that unregulated foreign funding could become a national security threat if left outside an effective regulatory framework.
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