ENOUGH IS ENOUGH! – ‘WE SAY NO TO OVER-REGULATION OF THE SECTOR’
Spaces for Change (S4C) has called for the immediate jettisoning of the Not-For-Profit Governance Code (NFPGC) 2023 proposed by the Financial Reporting Council of Nigeria.
In a statement issued to the media in Lagos, S4C, stated: “This new code aims to add even more regulations to an already heavily regulated non-profit sector, focusing on areas like board composition, financial management, and stakeholder engagement.
“The introduction of this code is yet another layer of control that is unnecessary and adds nothing new to the sector's ability to operate optimally and efficiently.
“Non-profits in Nigeria are already answerable to multiple regulatory bodies, including the Corporate Affairs Commission (CAC), the Special Control Unit Against Money Laundering (SCUML), the Federal Inland Revenue Service (FIRS), the Industrial Training Fund (ITF), the National Social Insurance Trust Fund (NSITF), and the Pension Commission (PenCom).
“These agencies impose various legal and administrative requirements, from compliance with anti-money laundering laws to staff training, social insurance schemes, and more.
“With these existing regulations, the sector is already struggling. Adding this new Code would push it to the breaking point, further crippling organizations that are already navigating countless bureaucratic hurdles.
“Let us be clear: non-profits are not against regulation. However, the sector is already one of the most regulated in the country even among other sensitive sectors requiring that level of regulation and piling on more regulations will stifle its ability to function.
“The introduction of this Code does not eliminate the responsibilities these organizations already face with other regulators. Instead, it adds a new layer of compliance, which will only drain resources and energy from the very organizations that are dedicated to serving vulnerable communities.
“This will slow down or even halt the vital work non-profits do, worsening the human rights crises in the country. This is why we are sounding the alarm and demanding that the Code be jettisoned immediately.
“As the Executive Director of Spaces for Change rightly put it, the Code is unnecessary and adds nothing new to the sector’s ability to operate optimally and efficiently. We urge all relevant regulatory bodies, government agencies, and stakeholders to rethink this approach. Overregulation would not strengthen the sector—it would cripple it.
“We need policies that help non-profits thrive, not ones that push them to the edge of collapse. Communities across Nigeria depend on the work of these organizations and choking them with more rules will only harm those they serve.”
