AGFCS raises alarm over foreign Aid Bill, says mandatory NGO registration threatens rights

Stanley Ihedigbo

Action Group on Free Civic Space (AGFCS) has called on the National Assembly to halt moves to pass the Foreign Aid Regulation, Disclosure and Transparency Bill, warning that the proposed legislation could place additional restrictions on civil society organisations (CSOs) and undermine freedom of association in Nigeria.

The Bill, identified as Senate Bill 1034 (SB 1034), passed its Second Reading in the Nigerian Senate on July 22, 2026. It seeks to regulate foreign aid in Nigeria and promote accountability and transparency in the receipt and utilisation of international resources.

However, AGFCS, comprising a coalition of civil society organisations, expressed concern that the proposed legislation could create another layer of regulation for an NGO sector that is already subject to several laws and regulatory requirements.

In a press statement signed by participating organisations, the group said Nigeria already has legal and regulatory frameworks covering the registration, reporting, periodic filings, financial accountability and disclosure of funding by CSOs and NGOs.

It argued that introducing another law covering substantially similar areas could result in regulatory duplication and overregulation of the sector.

“Rather than creating additional layers of regulation, attention should be directed towards addressing gaps in the implementation and enforcement of existing laws,” the group stated.

AGFCS also raised concerns over provisions seeking mandatory registration of NGOs, arguing that such requirements could have implications for the constitutional right to freedom of association.

According to the group, Section 40 of the Constitution of the Federal Republic of Nigeria guarantees the right of citizens to freely assemble and associate, while Nigeria’s obligations under international human rights frameworks also protect the rights of individuals and groups to associate and organise.

The coalition warned that regulatory requirements must not become barriers to the legitimate formation and operation of civil society organisations.

The group, however, acknowledged the importance of preventing the misuse of non-profit organisations for terrorist financing and other illicit financial activities.

It maintained that measures designed to address such risks must be proportionate, targeted and risk-based, rather than imposing broad regulatory burdens on legitimate NGOs.

AGFCS said research it had conducted showed that efforts to address terrorism financing risks could sometimes result in disproportionate regulatory requirements for legitimate non-governmental organisations, thereby affecting their ability to operate effectively.

The coalition also referenced Financial Action Task Force (FATF) Recommendation 8, which it said calls on governments to protect non-profit organisations from terrorist financing abuse through targeted, proportionate and risk-based measures.

According to the organisations, such measures should not unnecessarily disrupt legitimate charitable activities or undermine fundamental rights.

The group therefore warned that using terrorism financing concerns as justification for introducing restrictive regulations could place additional burdens on an already heavily regulated sector without addressing weaknesses in the enforcement of existing laws.

Against this backdrop, AGFCS called on the National Assembly and other relevant stakeholders to halt any attempt to pass the Foreign Aid Regulation, Disclosure and Transparency Bill into law.

The coalition also urged authorities to strengthen and effectively implement existing laws and regulatory frameworks governing NGOs and CSOs rather than introducing overlapping legislation.

It called for identified enforcement gaps, particularly those relating to financial accountability and the prevention of illicit financial flows, to be addressed through effective implementation of existing laws.

The group further demanded meaningful consultation with civil society organisations and other relevant stakeholders before the government introduces legislative or regulatory measures affecting the operations and funding of the NGO sector.

AGFCS stressed that the fight against terrorism financing and illicit financial flows remains important but should not come at the expense of legitimate civic activity or fundamental rights.

It urged Nigeria to pursue a regulatory framework that balances national security concerns with the need to preserve an open and enabling environment where civil society organisations can operate independently and effectively.

The statement was endorsed by African Focus For Youth Development (AFFYD), Building Blocks for Peace Foundation, Centre for Community Empowerment in Conflict and Peacebuilding – Kaduna, Center for Peace Education and Community Development, Centre for Justice, Empowerment & Development (C4J), Port Harcourt, Community Youth Arise Network, Dandalin Matasa Initiative for Rapid Development, Elixir Trust Foundation and Entrepreneurship Initiative for African Youth (EIFAY Africa).

Other signatories include Foundation for Environmental Rights Advocacy & Development (FENRAD), GARGA Foundation, Headfort Foundation for Justice, Institutional and Sustainable Development Foundation, MAYFRAME Development Initiative, Open Knowledge Development Initiative, Partnership for Social and Environmental Development Initiative (P4SEDI), Restorative Justice for Africa Initiative (REJA), Rule of Law and Accountability Advocacy Centre (RULAAC), Spaces for Change, Thrivescape Initiative, TruORGANIC Initiative for Social and Communities Development, Vision Spring Initiatives and Vivacious Development Initiative (VIDI).