Nigeria Foreign Aid Bill Threatens Civil

A proposed law to regulate foreign aid risks undermining the independence of civil society and shrinking civic space in Nigeria, Human Rights Watch said. The National Assembly should reject provisions granting authorities undue influence over the funding and activities of independent organizations.

In May 2026, the Senate introduced the Foreign Aid (Regulation, Transparency and Disclosure) Bill. It seeks to regulate the use of foreign aid, grants, and donations. The bill would establish a regulatory commission. Its stated intention is to promote transparency, align aid with national development priorities, prevent misuse of projects, and improve public information access.

Anietie Ewang, Nigeria researcher at Human Rights Watch, said legislation aligning foreign funding with government priorities risks expanding control and suppressing dissent. Independence is essential to the work of civil society organizations working to scrutinize government actions, expose wrongdoing, hold those in power accountable, and advocate for reforms.

Legislative Process and Precedents

The bill has passed its first and second readings in the Senate. This indicates approval of its general principles. It was referred to the Senate Committee on National Planning and Economic Affairs for detailed review, public hearings, and consultations.

That committee was given four weeks from July 22 to conduct its work. It is expected to report recommendations to the Senate at any time. If passed by the Senate, the bill would still require approval by the House of Representatives and presidential assent to become law.

Nigeria's National Assembly has considered several similar legislative proposals over the years. Many faced significant opposition and failed. A 2016 bill to establish a Nongovernmental Organizations Regulatory Commission stalled after a 2017 public hearing. A similar 2020 bill was withdrawn following opposition from legislators.

Vague Provisions and Severe Penalties

The current bill raises many of the same concerns as its predecessors. It contains a vaguely worded provision requiring that "foreign aid-funded activities shall align with Nigeria's national development plans and priorities." This offers no clarity on how alignment would be assessed.

Its broad language creates significant uncertainty for organizations engaged in human rights, governance, anti-corruption, and other accountability work. Such work may challenge official policies or expose government shortcomings. Failure to comply could trigger severe penalties.

Requiring all foreign-funded activities to align with government priorities would undermine civil society independence. It could be used to restrict organizations critical of those in power. This creates opportunities to suppress dissent and limit democratic participation.

International Rights Frameworks

The Nigerian Constitution guarantees rights to freedom of expression and association. These rights are also protected under international treaties Nigeria has ratified and is obligated to uphold.

The United Nations special rapporteur has repeatedly affirmed that the ability to seek and use resources, including foreign funding, is an integral part of the right to freedom of association. It is essential for the effective operation of independent organizations.

Likewise, the African Commission on Human and Peoples' Rights Guidelines affirm that associations should have the right to seek and use funds freely from foreign sources. The guidelines state governments should not restrict legitimate activities simply because an organization receives foreign funding.

Conditioning access to foreign funding on conforming with government priorities would severely undermine civil society independence.

Duplicative and Onerous Requirements

The proposed bill also includes an array of new requirements around financial integrity. Organizations in Nigeria already face extensive registration, financial reporting, and regulatory obligations. For instance, they must navigate complex fixtures of existing laws and their annual standings with various agencies.

Nonprofits must register with the Corporate Affairs Commission and comply with annual reporting. They are also subject to obligations under the Special Control Unit Against Money Laundering, the Economic and Financial Crimes Commission, and tax authorities. The bill provides no explanation of why its additional requirements are necessary or how they would complement existing processes, which already demand detailed financial stats and disclosures.

Ewang said transparency and accountability are legitimate objectives, but they should not become a pretext to undermine the independence of civil society. Nigeria should not create new layers of regulation giving authorities excessive control over organizations simply because they receive foreign funding.