National

Foreign Aid Bill Threatens Church Charity, Zakat Funds—CSOs

A coalition of more than 30 civil society organisations on Wednesday demanded the immediate withdrawal of the Foreign Aid (Regulation, Transparency and Disclosure) Bill, 2026.

It warned that the proposed legislation could impose sweeping restrictions on civil society organisations and other community-based groups receiving foreign assistance.

According to the groups, the proposed framework could affect not only conventional NGOs but also church welfare committees, mosque-based Zakat networks, hometown development unions, university alumni associations and informal community savings groups.

The coalition, which includes Gatefield, Accountability Lab Nigeria, DigiCivic Initiative, Yiaga Africa, BudgIT, SERAP, CLEEN Foundation, Enough is Enough Nigeria and the Nigeria Network of NGOs, said the bill would create an additional regulatory regime despite existing laws and institutions overseeing not-for-profit organisations and financial transactions in the country.

The groups made their position known in a joint press conference in Abuja
on the proposed legislation sponsored by Senator Ibrahim Hassan Dankwambo (PDP-Gombe North).

The bill, designated SB.1034, has passed second reading in the Senate and proposes the establishment of a Foreign Aid Regulatory Commission with powers to register, monitor, inspect, audit and sanction recipients of foreign grants, donations and technical assistance.

The coalition described the proposed law as repressive and unconstitutional, arguing that it could place undue restrictions on organisations and informal groups involved in supporting vulnerable Nigerians.

The organisations argued that Nigeria already had several mechanisms for monitoring non-governmental and not-for-profit organisations, citing the Corporate Affairs Commission (CAC), the Special Control Unit Against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU) and the Financial Reporting Council of Nigeria.

They maintained that the proposed Foreign Aid Register would duplicate existing oversight mechanisms rather than fill a regulatory gap.

Speaking, the Country Director, Accountability Lab Nigeria, Odeh Friday, said the coalition was demanding the complete withdrawal of the bill because of what it described as its broad reach and potential impact on ordinary community organisations.

Friday said the proposed legislation went beyond regulating conventional NGOs, arguing that its broad definition could bring a wide range of non-state, non-profit organisations under its regulatory framework.

He said the coalition was particularly concerned that the bill could make access to foreign funding subject to additional government approval and oversight.

On her part, the Executive Director, DigiCivic Initiative,

Mojirayo Ogunlana said existing Nigerian laws already imposed substantial disclosure and reporting obligations on not-for-profit organisations.

Ogunlana said incorporated trustees were required to disclose sources of income in annual returns filed with the CAC, while organisations considered vulnerable to terrorism-financing abuse were subject to additional obligations under existing anti-money-laundering and terrorism-financing regulations.

She also pointed to the Nigeria Development Cooperation Dashboard launched by the Federal Ministry of Budget and Economic Planning in 2024 as an existing mechanism for publishing information on development assistance.

According to her, gaps in the transparency of foreign assistance should be addressed by improving existing systems rather than establishing a new commission with broad powers over independent organisations.

The coalition said the government had already indicated plans to capture development cooperation flows in the national budget, with quarterly breakdowns, by the 2027 fiscal cycle.

Also speaking, the Strategic Lead, Democracy, Rights and Public Sector at Gatefield,

AbdulRahman Adebayo, said the coalition was particularly concerned about provisions requiring foreign-funded projects to align with government-defined priorities.

Adebayo said such a requirement could undermine the independence of civil society organisations whose work sometimes involved challenging government policies, investigating alleged abuses, advocating for marginalised communities and demanding accountability from public institutions.