Coalition calls on NASS to reject Bill seeking to restrict foreign funding for NGOs
The Action Group on Free Civic Space (AGFCS), a coalition of civil society organisations, has called on the National Assembly to halt the passage of the Foreign Aid Regulation, Disclosure and Transparency Bill (SB 1034), warning that the proposed legislation could place additional restrictions on Nigeria’s civic space and the operations of non-governmental organisations (NGOs).
The Bill passed its Second Reading in the Senate on July 22, 2026. It seeks to regulate foreign aid in Nigeria and strengthen accountability and transparency in the receipt and utilisation of international resources.
In a press statement, the AGFCS said it was concerned that the proposed legislation could lead to regulatory duplication, noting that Nigeria already has laws and regulatory frameworks governing the registration, reporting, financial accountability and funding disclosure requirements of civil society organisations.
The coalition argued that instead of introducing another layer of regulation, authorities should focus on strengthening the implementation and enforcement of existing laws.
The group also raised concerns over provisions requiring the mandatory registration of NGOs, saying such measures could have implications for the constitutional right to freedom of association guaranteed under Section 40 of the Nigerian Constitution.
According to the coalition, regulatory requirements should not become barriers to the establishment and legitimate operation of civil society organisations.
The AGFCS acknowledged the importance of preventing the misuse of non-profit organisations for terrorist financing and other illicit financial activities. However, it maintained that measures designed to address such risks should be proportionate, targeted and risk-based.
The coalition cited Financial Action Task Force (FATF) Recommendation 8, which it said calls for measures against terrorist financing through non-profit organisations to be targeted and proportionate while protecting legitimate charitable activities and fundamental rights.
“Restrictive layers of regulation ostensibly to address terrorism financing risks through NGO channels risks placing additional burdens on an already heavily regulated sector without necessarily addressing the underlying enforcement gaps,” the coalition said.
The AGFCS consequently called on the National Assembly and other stakeholders to halt efforts to pass the Bill into law and instead strengthen existing regulatory frameworks governing NGOs and CSOs.
It also urged authorities to address enforcement gaps, particularly those relating to financial accountability and the prevention of illicit financial flows.
The coalition further called for meaningful consultation with civil society organisations and other stakeholders before introducing legislative or regulatory measures affecting the operations and funding of NGOs.
It stressed that while combating terrorism financing and illicit financial flows remains important, such efforts should not undermine legitimate civic activities or fundamental rights.
“Nigeria’s regulatory approach should strike a healthy balance between protecting national security and preserving an open and enabling environment in which civil society can operate independently and effectively,” the group said.
The statement was endorsed by several civil society organisations, including African Focus For Youth Development (AFFYD), Building Blocks for Peace Foundation, Centre for Community Empowerment in Conflict and Peacebuilding–Kaduna, Centre for Justice, Empowerment & Development (C4J), Foundation for Environmental Rights Advocacy & Development (FENRAD), Headfort Foundation for Justice, Spaces for Change, Restorative Justice for Africa Initiative (REJA), Rule of Law and Accountability Advocacy Centre (RULAAC), and other organisations.
