The Action Group on Free Civic Space (AGFCS) has sounded the alarm over the proposed Foreign Aid Regulation, Disclosure and Transparency Bill (SB 1034), calling for its immediate halt. The group, comprising 23 prominent civil society organisations (CSOs), including NGOs, fears the bill could impose unnecessary restrictions and duplicate regulatory frameworks already in place.
The bill, which sailed through its Second Reading in the Nigerian Senate on July 22, 2026, aims to bring more oversight to how foreign aid is received and used in Nigeria. However, the AGFCS argues that Nigeria already has a comprehensive set of laws governing CSOs and NGOs. These include rules on registration, regular reporting, financial accountability, and disclosing funding sources.
AGFCS stated that introducing yet another law covering similar ground raises serious concerns about regulatory overreach. Instead of piling on more legislation, the group advocates for a stronger focus on enforcing the existing laws effectively. They pointed out that the proposed mandatory registration of NGOs, along with other restrictive clauses, could infringe upon the constitutional right to freedom of association. This right is guaranteed under Section 40 of Nigeria's Constitution. It could also run counter to international human rights commitments that protect the right of individuals and groups to organise freely.
"Regulatory requirements shouldn't therefore become a barrier to the formation and legitimate operation of civil society organisations," the statement read. While acknowledging the critical need to prevent non-profits from being exploited for terrorist financing or other illegal activities, the AGFCS stressed that any measures taken must be proportionate and risk-based. They cited their own research indicating that anti-terrorism financing efforts can sometimes place undue regulatory burdens on legitimate NGOs. This can cripple their ability to function effectively.
This approach, they argue, clashes with Recommendation 8 of the Financial Action Task Force (FATF). This recommendation urges governments to protect non-profit organisations from abuse by terrorist financiers using targeted, proportionate, and risk-based methods. It also ensures legitimate charitable work and fundamental rights aren't undermined. The AGFCS believes that imposing more stringent regulations, even with the stated goal of curbing terrorism financing, risks overburdening an already regulated sector. This could happen without actually fixing any enforcement gaps.
The Action Group is urging the National Assembly and other stakeholders to reconsider the bill. They specifically ask for strengthening and enforcing current laws. They also want existing enforcement deficits addressed, particularly concerning financial accountability and preventing illicit financial flows. Furthermore, they ask for meaningful consultation with civil society groups before pursuing any new legislative measures. The fight against terrorism financing and illicit financial flows is crucial, they admit.
However, it shouldn't come at the cost of legitimate civic engagement or fundamental human rights. The AGFCS is pushing for a regulatory approach that carefully balances national security needs with the preservation of an open environment. This environment is where civil society can operate freely and effectively.
The 23 organisations that signed the statement include African Focus For Youth Development (AFFYD), Building Blocks for Peace Foundation, Center for Peace Education and Community Development, Centre for Community Empowerment in Conflict and Peacebuilding (Kaduna), Centre for Justice, Empowerment & Development (C4J, Port Harcourt), Community Youth Arise Network, Dandalin Matasa Initiative for Rapid Development, Elixir Trust Foundation, Entrepreneurship Initiative for African Youth (EIFAY Africa), and Foundation for Environmental Rights Advocacy & Development (FENRAD). Others also include GARGA Foundation and Headfort Foundation.