A Civil Society Organisations, Open Alliance has faulted the proposed Foreign Aid (Regulation, Transparency and Disclosure) Bill, 2026, sponsored by Senator Ibrahim Dankwambo, warning that the legislation could create overlapping regulatory structures and impose excessive controls on civil society organisations and other legitimate beneficiaries of foreign assistance.
The group said while it supports greater transparency, accountability and effective coordination in the management of foreign aid, the proposed legislation is unnecessary because Nigeria already has extensive laws and institutions capable of monitoring financial transactions, enforcing disclosure requirements and addressing the misuse of donor funds.
In a statement, Open Alliance said the proposed legislation, identified as SB. 1034, could create an additional layer of bureaucracy and regulatory uncertainty for organisations involved in humanitarian, development, health, education, research and social intervention programmes.
It expressed particular concern over provisions that would require mandatory registration of foreign aid and grant government broad powers to demand information, conduct inspections, impose sanctions and regulate organisations receiving foreign assistance.
According to the group, such provisions could potentially be used to interfere with the legitimate activities of civil society organisations, community-based organisations, faith-based organisations, research institutions and humanitarian actors.
Open Alliance argued that the proposed framework could have broader implications for Nigeria’s civic space by increasing government oversight of organisations that rely on foreign grants and donations to implement programmes across the country.
The group maintained that Nigeria already has a broad legal and institutional framework covering financial accountability, anti-money laundering, taxation, corporate governance, public procurement and the operations of non-governmental organisations and other entities that receive grants and donations.
It cited the Money Laundering (Prevention and Prohibition) Act 2022 as one of the country’s key laws for promoting financial transparency and accountability.
The legislation requires banks and other covered businesses to conduct customer due diligence, maintain appropriate financial records and report suspicious transactions to relevant authorities.
Open Alliance also noted that institutions such as the Nigerian Financial Intelligence Unit and the Economic and Financial Crimes Commission already have powers to investigate financial crimes, including money laundering, terrorist financing and the misuse of funds.
It further pointed to the Companies and Allied Matters Act 2020, which provides the legal framework for the registration and operation of companies, non-governmental organisations and other incorporated entities in Nigeria.
Under CAMA, organisations are required to register with the Corporate Affairs Commission, maintain financial records, submit relevant reports and comply with governance requirements, while the CAC has powers to monitor compliance and take appropriate action where organisations breach applicable regulations.
The group therefore argued that establishing another regulatory commission specifically to oversee foreign aid could duplicate the responsibilities of existing institutions rather than strengthen accountability.
It warned that regulatory duplication could increase compliance costs and administrative burdens for organisations, while also consuming public resources that could otherwise be directed towards strengthening existing institutions.
According to Open Alliance, the potential uncertainty created by overlapping mandates could particularly affect organisations delivering essential humanitarian and development interventions in communities across Nigeria.
The group urged the National Assembly to reconsider the necessity of SB. 1034 and focus instead on improving the implementation and enforcement of existing laws.
It called for stronger coordination among government agencies responsible for financial oversight, greater public access to information through existing transparency mechanisms and constructive engagement between government, civil society organisations and development partners.
Open Alliance also urged lawmakers to ensure that any future reforms relating to foreign aid are consistent with constitutional protections for freedom of association, freedom of expression and participation in public affairs.
The group stressed that the objective of ensuring accountability in foreign aid should not come at the expense of the civic space required by civil society and development organisations to operate effectively.
It maintained that the priority should be better implementation of Nigeria’s existing legal and institutional frameworks rather than the creation of additional legislation and regulatory bodies.
“The need of the hour is not more legislation, but better implementation of the robust legal and institutional frameworks that already exist,” the group said, arguing that strengthening existing institutions would improve accountability without imposing unnecessary restrictions on Nigeria’s civic space.
(The Whistler)
