A bill that aims to make Non-Governmental Organisations (NGOs) in Nigeria register all foreign aid and donor projects with the government has passed its second reading in the Senate.
Senate President, Godswill Akpabio, announced this during Wednesday’s plenary session after most senators voted in favor of it.
After the bill passed, it was sent to the Senate Committees on National Planning and Economic Development and Finance for a public hearing. These committees must report back in four weeks.
The bill, sponsored by Ibrahim Dankwambo, who represents Gombe North Senatorial District, wants to set up a National Donor Coordination Framework. It aims to make it mandatory for all donor-funded projects to be registered and to create a national database of foreign assistance.
It also wants to include donor-funded projects in government budgets, require public disclosure of funding sources and project details, and impose penalties for misusing or failing to register donor funds.
During the debate, Mr Dankwambo, a former Accountant-General of the Federation, pointed out that billions of naira in foreign aid go to NGOs in Nigeria without proper checks on where the money comes from or what it is for.
He said this lack of oversight creates serious national security risks and weakens public accountability.
Mr Dankwambo mentioned that Nigeria receives a lot of grants, technical help, humanitarian aid, and loans from both local and international partners. But the country’s system for managing foreign aid is still not clear.
He added that donor-funded projects are often scattered among different ministries, departments, and agencies. Many of these projects are done outside the national budget, leading to duplication, poor coordination, and weak accountability.
Mr Dankwambo, who was also a governor of Gombe State, said this new law would help improve oversight of foreign aid received by NGOs and encourage more transparency and accountability.
There are thousands of NGOs in Nigeria working on projects funded by foreign governments, international charities, and private foundations.
These projects cover humanitarian relief, healthcare, education, agriculture, governance, climate change, human rights, and poverty reduction.
While many projects work together with federal and state governments, some are done independently by local and international NGOs, especially in areas affected by conflict where there is a high need for aid.
Currently, NGOs must register with the Corporate Affairs Commission (CAC). Some also register with the Special Control Unit against Money Laundering (SCUML) under the Economic and Financial Crimes Commission (EFCC) to follow anti-money laundering rules.
But there is no law that requires NGOs to disclose all foreign donor-funded projects to the federal government or to include these projects in the national budget. Information on these projects is often scattered across different government agencies, donors, and NGOs.
Most senators who spoke during the debate showed support for the bill.
Senate Chief Whip, Tahir Monguno (APC, Borno North), said many foreign donors send money through NGOs without proper checks.
Deputy Senate President, Barau Jibrin, noted that while foreign aid received directly by the federal government usually appears in the national budget, the large sums sent to NGOs and state governments often lack public oversight.
“We can’t tell what money goes into the coffers of NGOs. Fraudsters set up fake NGOs to collect money,” he said.
Adamu Aliero (APC, Kebbi Central) said stricter rules would improve how donor funds are used and build trust among development partners through better transparency.
Recalling the Senate Committee on Agriculture's oversight work, Mr Aliero mentioned cases where donor funds were received but could not be properly accounted for.
He also suggested that the new law should cover state governments along with NGOs to improve the National Assembly’s oversight.
Sani Musa (APC, Niger East) and chairman of the Senate Committee on Finance, said this new law would align Nigeria with global best practices while increasing donor confidence through better transparency.
He warned that not properly checking donor-funded activities could create serious security risks.
“Many aids going to so-called NGOs are not properly scrutinized. We have seen cases where this creates security issues because we do not know who is accountable for what. Is it insurgents taking money meant for victims?” Mr Musa asked.
He added that the new law would also separate foreign investments from grants, improving fiscal planning and policy coordination.
Adams Oshiomhole (APC, Edo North) said every donor fund entering Nigeria should be fully disclosed, documented, and subject to legislative oversight.
The former Edo governor called for mandatory disclosure of all resources transferred to NGOs and civil society groups, with strict penalties for those who do not comply.
After the debate, Mr Akpabio warned that unregulated foreign funding could become a national security threat if not kept under proper control.
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