Nigeria’s civil society sector may be approaching a significant change in its regulatory environment.
Two bills currently before the National Assembly have generated concern among civil society organisations and advocates: the Non-Governmental and Civil Society Organisations Agency (Establishment) Bill, 2025 (HB.3019) and the Foreign Aids (Regulation, Coordination, Transparency and Disclosure) Bill, 2026 (SB.1034).
Both proposals are presented within the legitimate context of improving transparency, accountability and coordination. However, a close reading raises an equally important question: at what point does regulation intended to promote accountability begin to restrict the independence and civic space that civil society requires to function effectively?
HB.3019: A New Regulatory Agency for NGOs and CSOs
HB.3019 proposes the establishment of a federal agency specifically responsible for regulating non-governmental and civil society organisations in Nigeria.
This would introduce another layer of regulation alongside existing obligations under the Corporate Affairs Commission (CAC), tax authorities, anti-money-laundering frameworks and other applicable regulatory institutions.
One of the most significant provisions of the bill is the requirement for NGOs and CSOs to register with the proposed Agency.
Under the bill, registration with the CAC would therefore not, by itself, be sufficient authority for an organisation to operate. The proposed Agency would issue a certificate authorising an NGO or CSO to operate in Nigeria.
More importantly, that certificate would be valid for only two years.
Organisations would consequently have to seek periodic renewal of their authority to operate. Failure to renew could result in termination of operations and removal from the register.
This represents an important shift from regulatory compliance towards what could, in practice, function as a recurring licensing system for civil society organisations.
Broad Grounds for Refusing Registration
HB.3019 also permits registration to be refused where an organisation’s proposed activities or procedures are considered “not in the national interest.”
The concern is not necessarily with the concept of protecting the national interest. Governments unquestionably have responsibilities relating to national security, financial integrity and the prevention of criminal activity.
The difficulty lies in the breadth of such terminology.
Civil society organisations sometimes exist precisely to question government policy, monitor public expenditure, advocate reforms, observe elections, defend human rights, promote accountability or represent communities whose interests may differ from prevailing government positions.
A regulatory standard such as “national interest”, unless carefully and objectively defined, could therefore create considerable discretionary power over organisations engaged in legitimate civic activities.
Government Approval of NGO Projects
Perhaps one of the most consequential aspects of HB.3019 concerns project implementation.
The bill provides for organisations implementing development projects to consult relevant government ministries and seek approval. Proposed projects would also be registered with the Agency before implementation.
Information to be disclosed may include project costs, beneficiaries, duration, personnel, donor contributions and other implementation details.
This could fundamentally alter the way many development programmes currently operate.
Ordinarily, once an organisation secures donor funding, it implements the approved programme in accordance with its grant agreement, Nigerian law, donor requirements and its own governance procedures.
The proposed framework could introduce another stage:
Donor approval → NGO → Government Ministry approval → Agency registration → Project implementation.
For organisations managing time-bound humanitarian and development programmes, additional approval processes could also create significant administrative and implementation delays.
Government Access to Donor Reports and Audits
HB.3019 could also require organisations undergoing assessment to provide documents including donor project narrative reports, financial reports, donor-requested project audits and organisational audit reports.
Accountability for public and donor funds is essential.
However, many NGOs already maintain extensive reporting arrangements involving their boards, donors, independent auditors, regulators and statutory authorities.
The question therefore becomes whether creating another reporting structure materially strengthens accountability or primarily duplicates existing compliance obligations.
There are also legitimate questions concerning confidentiality, safeguarding information and sensitive programme data contained in some donor reports.
National Security and NGO Registration
The bill additionally provides a role for the Office of the National Security Adviser in matters that could lead to suspension or cancellation of an organisation’s registration.
National security institutions clearly have a legitimate role where terrorism financing, money laundering or other serious criminal activity is suspected.
Nevertheless, giving security institutions a role in determining the continued operational status of ordinary civil society organisations requires strong safeguards to ensure that legitimate advocacy, criticism, research and civic participation cannot be treated as security concerns.
The independence and accessibility of appeal mechanisms would therefore be particularly important.
SB.1034: Regulating Foreign Aid
The second proposal, SB.1034, approaches civil society from a different direction.
Rather than primarily regulating NGOs themselves, the bill seeks to establish a regulatory framework for foreign aid received in Nigeria, including funding received by NGOs and civil society organisations.
It proposes the establishment of a Foreign Aid Regulatory Commission with powers relating to registration, disclosure, monitoring, inspections, audits and sanctions.
Recipients of foreign aid would be required to register relevant funding with the Commission, including information about its source, purpose and implementation arrangements.
For Nigerian organisations dependent on international development funding, this could have considerable practical consequences.
Foreign Funding and Public Disclosure
Greater transparency concerning foreign funding is not inherently unreasonable.
Nigeria has legitimate interests in preventing money laundering, terrorist financing, fraud and improper foreign interference.
However, the definition of foreign assistance under the proposed framework is broad and could potentially cover grants, donations, technical assistance and other forms of international support.
The proposed disclosure requirements may also extend to funding conditions and implementing partners.
This raises questions about proportionality and confidentiality, particularly for organisations working in sensitive areas such as gender-based violence, human rights, election monitoring, whistleblower protection and conflict-affected communities.
Transparency must therefore be balanced against legitimate privacy, security and safeguarding considerations.
Independent Audits and Existing Donor Requirements
SB.1034 also introduces independent audit requirements relating to foreign aid.
Most established international donor programmes already impose substantial financial controls. These commonly include approved budgets, procurement requirements, periodic financial reporting, supporting-document verification, independent audits and donor monitoring.
A statutory audit requirement that does not adequately recognise existing donor audits could therefore result in organisations paying for multiple audits of substantially the same funds.
For smaller organisations and grants, the compliance cost could become particularly significant.
What Happens When a Donor Approves a Budget Change?
Another issue deserving careful attention concerns the treatment of the diversion or misuse of foreign aid.
Development projects rarely proceed exactly according to their original budgets.
Activities change. Prices increase. Savings arise under one budget line and shortages under another. Donors therefore commonly permit budget revisions, virements, programme amendments and no-cost extensions, subject to approval.
Any legislation criminalising diversion of foreign assistance should consequently distinguish clearly between fraudulent diversion and a legitimate reallocation formally approved by the donor.
Without such protection, ordinary grant-management decisions could become unnecessarily risky.
Must Civil Society Align With Government Priorities?
SB.1034 also requires foreign-funded projects to align with Nigeria’s national development plans and priorities.
For foreign assistance provided directly to government, such coordination is understandable.
The issue becomes more complicated when applied to independent civil society.
A functioning civil society does not exist merely to implement government programmes.
Civil society organisations may identify needs overlooked by government, advocate alternative policies, monitor government performance, challenge public decisions or represent marginalised communities.
Their independence is therefore not an obstacle to national development. It is part of a healthy democratic society.
The Bigger Concern Is the Combined Effect
Each bill can be debated independently.
The more important question, however, may be what happens when both regulatory frameworks operate simultaneously.
A Nigerian NGO could potentially be required to maintain:
- CAC incorporation and statutory filings;
- existing tax and anti-money-laundering compliance;
- registration with a new NGO and CSO Agency;
- renewal of its operational certificate every two years;
- Ministry approval and Agency registration for projects;
- disclosure of donor agreements and project information;
- separate registration of foreign funding with a Foreign Aid Regulatory Commission;
- additional reporting and audit requirements; and
- compliance with multiple inspection and enforcement regimes.
The cumulative administrative burden could be substantial, particularly for small and community-based organisations that do not have large compliance departments.
There is therefore a legitimate policy question as to whether Nigeria needs additional institutions or whether accountability could be better achieved by strengthening and coordinating existing regulatory mechanisms.
Accountability and Civic Freedom Are Not Opposites
Nigeria unquestionably needs transparency in the non-profit sector.
NGOs should account properly for funds received. Organisations should maintain credible financial records, comply with applicable laws, prevent money laundering and terrorist financing, protect beneficiaries and demonstrate that resources are used for their intended purposes.
Civil society should not be beyond regulation.
But neither should regulation become a mechanism through which independent civic activity requires recurring government permission.
The appropriate objective should therefore be effective regulation without unnecessary duplication, excessive discretion or restriction of legitimate civic activity.
An Opportunity for Constructive Engagement
Neither HB.3019 nor SB.1034 should be discussed only in terms of being “for” or “against” regulation.
The National Assembly has an opportunity to engage civil society organisations, regulators, development partners, professional bodies, community organisations and constitutional experts on how legitimate accountability objectives can be achieved without unnecessarily shrinking Nigeria’s civic space.
Important safeguards could include clearer definitions, proportional reporting requirements, recognition of existing statutory and donor audits, protection for legitimate donor-approved budget modifications, independent appeal mechanisms, confidentiality protections and clearly defined limits on regulatory discretion.
Nigeria needs accountable civil society organisations.
It also needs independent civil society organisations.
Good legislation should make those two objectives reinforce each other rather than forcing the country to choose between them.
This article is based on a review of HB.3019, the Non-Governmental and Civil Society Organisations Agency (Establishment) Bill, 2025, and SB.1034, the Foreign Aids (Regulation, Coordination, Transparency and Disclosure) Bill, 2026.
Both are legislative proposals and should not be understood as current Nigerian law.