CSOs demand withdrawal of Foreign Aid Bill, warn of threat to civic space

A coalition of civil society organisations has called for the immediate withdrawal of the Foreign Aid (Regulation, Transparency and Disclosure) Bill, 2026, warning that the proposed legislation could restrict civic space and give the government excessive powers over independent organisations.

The coalition, at a press conference on Wednesday, described the bill as repressive and unconstitutional, arguing that it would create a new regulatory regime for organisations based on their sources of funding.

The bill, sponsored by Ibrahim Dankwambo, senator representing Gombe North, passed second reading in the Senate in July and was referred to committees for further consideration. It seeks to establish a framework for registering and monitoring foreign aid and donor-funded projects, including disclosure of funding sources and project details.

The coalition said the proposed law goes beyond regulating large non-governmental organisations and could affect a wide range of community-based organisations because of its broad definition of an NGO.

It specifically cited church welfare committees, mosque Zakat networks, hometown development unions, university alumni associations and informal savings groups as examples of organisations that could potentially fall within the bill’s scope.

“The government did not provide welfare. It cannot ban our charity,” the coalition said.

The organisations argued that Nigeria already has several mechanisms for monitoring non-profit organisations and their finances, including the Corporate Affairs Commission, the Economic and Financial Crimes Commission’s Special Control Unit Against Money Laundering and the Nigeria Financial Intelligence Unit.

They also cited existing disclosure requirements under the Financial Reporting Council of Nigeria Act and the Companies and Allied Matters Act.

The proposed legislation, they said, would therefore duplicate existing regulatory structures while creating additional powers for a new foreign aid regulator.

Concerns over sanctions

The coalition also raised concerns about the sanctions contained in the proposed legislation.

It said failure to register, inaccurate disclosures or obstruction of the proposed commission could attract up to five years’ imprisonment and a minimum fine of ₦5 million for individuals.

Organisations could face a minimum fine of ₦20 million as well as suspension or revocation of their operational licence, according to the coalition.

It argued that such penalties could turn administrative breaches into criminal offences and potentially result in the closure of independent civil society organisations.

The coalition further opposed provisions requiring foreign-funded projects to align with government-defined development priorities.

It argued that such a requirement could undermine the independence of organisations whose work involves investigating government agencies, documenting alleged abuses or advocating for communities whose interests may conflict with official policies.

“The central defect in SB. 1034 is not that it demands transparency, but it demands transparency selectively,” the coalition said.

It argued that if disclosure of funding is considered necessary for organisations exercising public influence, the requirement should apply regardless of whether the funding comes from foreign donors, Nigerian companies, government agencies, politicians or entities linked to public officials.

Government already has an aid database

The coalition also pointed to the Nigeria Development Cooperation Dashboard launched by the Federal Ministry of Budget and Economic Planning in 2024.

The dashboard publishes planned and actual development cooperation disbursements by donor, sector, state and development plan pillar.

The organisations said improving the existing dashboard and linking it more closely with the national budget would strengthen transparency without creating another regulatory body.

What sponsor says

However, the coalition’s position contrasts with arguments advanced by sponsors and supporters of the bill in the Senate.

During the July debate, Mr Dankwambo said billions of naira in foreign aid were being channelled through NGOs without adequate scrutiny of the sources or purposes of the funds. He argued that the lack of oversight posed national security and accountability concerns.

The bill proposes compulsory registration of donor-funded projects, a national database of foreign assistance, disclosure of funding sources and project implementation details, and the integration of donor-funded interventions into government budgets.

Some senators also argued that the proposed framework would address gaps in the monitoring of foreign assistance channelled outside the national budget.

The coalition, however, said greater transparency could be achieved by strengthening existing systems rather than creating a new commission with broad enforcement powers.

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It also cited international human rights standards protecting freedom of association and the right of civil society organisations to seek and receive resources, including foreign funding.

The organisations warned that a regulatory system based on the source of an organisation’s funding could be expanded beyond financial oversight and used to restrict legitimate civic activity.

They pointed to Ethiopia and Rwanda as examples of countries where restrictions on foreign-funded civil society organisations have affected access to funding and operations, while stressing that Nigeria’s circumstances are different.

The coalition urged the National Assembly to withdraw the bill and called on religious leaders, student unions, diaspora groups, market associations and other community organisations to oppose it.

“We do not need a license to care for our communities. We demand a complete withdrawal of this bill,” the coalition said.

The statement was signed by Gatefield, Accountability Lab Nigeria, Mothers And Marginalised Advocacy Centre (MAMA Centre), Webfala Digital Skills for All Initiative, TechHerNG, Hope Behind Bars Africa, DigiCivic Initiative, YouthHubAfrica, Ntetee Foundation, RID Nigeria Initiative (Rivers in the Desert Nigeria), Crowdr, Yiaga Africa, Tunani Initiative, BUDGIT Nigeria, Pan African Lawyers Union (PALU), African Law Foundation (AFRILAW), Citizens Gavel, Rule of Law and Accountability Advocacy Centre (RULAAC), Speak Out Africa Initiative (SOAI), Resource Centre for Human Rights & Civic Education (CHRICED), Socio-Economic Rights and Accountability Project (SERAP), Socio Economic Research and Development Centre (SERDEC), Nigeria Network of NGOs, #FixPolitics Initiative, WACSI Node Nigeria, Global Rights, CLEEN Foundation, Centre for Transparency Advocacy (CTA), Koyenum Immalah Foundation (KIF), WAVE Foundation Africa and Enough is Enough (EiE) Nigeria.