Civil Society Groups Reject Foreign Aid Bill, Warn of Threat to Civic Space
By Eyo Nsima
A coalition of civil society organisations under the Action Group on Free Civic Space (AGFCS) has called on the National Assembly to halt moves to enact the Foreign Aid Regulation, Disclosure and Transparency Bill, warning that the proposed legislation could impose excessive restrictions on non-governmental organisations (NGOs) and undermine civic space in Nigeria.
The coalition, in a statement issued on Friday, expressed concern over Senate Bill 1034, which passed its second reading in the Senate on July 22, 2026.
The Bill seeks to regulate foreign aid in Nigeria and promote accountability and transparency in the receipt and utilisation of international resources.
However, AGFCS argued that Nigeria already has several laws and regulatory frameworks governing civil society organisations, including requirements for registration, reporting, periodic filings, financial accountability and funding disclosure.
According to the group, introducing another law covering substantially similar areas could result in “regulatory duplication and overregulation of the NGO sector.”
It said the focus should instead be on closing gaps in the implementation and enforcement of existing laws.
The coalition also raised concerns over the proposed mandatory registration of NGOs, arguing that such a requirement, alongside other restrictive provisions in the Bill, could affect the constitutional right to freedom of association.
“Such requirements, alongside other restrictive provisions of the Bill, have implications for the right to freedom of association guaranteed under Section 40 of the Constitution of the Federal Republic of Nigeria,” AGFCS stated.
It added that the proposed regulatory requirements should not become barriers to the formation and legitimate operation of civil society organisations.
While acknowledging the need to prevent the misuse of non-profit organisations for terrorist financing and other illicit financial activities, the coalition insisted that such measures must be “proportionate, targeted and risk-based.”
According to AGFCS, efforts to address terrorism-financing risks have sometimes resulted in disproportionate regulatory burdens on legitimate NGOs, restricting their ability to operate effectively.
“This approach is inconsistent with the spirit of Financial Action Task Force (FATF) Recommendation 8,” the group said, stressing that governments are expected to protect non-profit organisations from terrorist financing abuse while ensuring that regulation does not unnecessarily disrupt legitimate charitable activities or undermine fundamental rights.
The coalition warned that adding restrictive layers of regulation could place further burdens on what it described as an already heavily regulated sector without necessarily resolving enforcement weaknesses.
“Introducing 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,” it said.
AGFCS makes demands
Against this backdrop, the coalition called on the National Assembly and other relevant stakeholders to halt any attempt to pass the Bill into law.
It also demanded stronger implementation of existing laws and regulatory frameworks governing NGOs and CSOs rather than the introduction of overlapping legislation.
The group urged authorities to address enforcement gaps, particularly those relating to financial accountability and the prevention of illicit financial flows.
It further called for meaningful consultations with civil society organisations and other stakeholders before any legislative or regulatory measures affecting the operations and funding of the NGO sector are pursued.
AGFCS stressed that combating terrorism financing and illicit financial flows remained important, but argued that 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,” it stated.
The statement was endorsed by more than 20 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, Open Knowledge Development Initiative, Restorative Justice for Africa Initiative (REJA), Rule of Law and Accountability Advocacy Centre (RULAAC), Spaces for Change and Thrivescape Initiative.
