BudgIT has raised concerns over the proposed Foreign Aid (Regulation, Transparency and Disclosure) Bill, 2026 (SB. 1034), sponsored by Senator Ibrahim Hassan Dankwambo, describing the legislation as unnecessary and potentially harmful to Nigeria’s civic space.
In a statement issued in Lagos, the organisation acknowledged the importance of transparency, accountability, disclosure and effective coordination in the management of foreign aid, but argued that the proposed legislation could create an additional layer of bureaucracy and government control.
According to BudgIT, provisions requiring the mandatory registration of all foreign aid, alongside broad powers to demand information, conduct inspections, impose sanctions and regulate recipients of foreign assistance, could be used to interfere with the legitimate activities of civil society organisations, community-based organisations, faith-based organisations, research institutions and humanitarian actors.
The organisation said Nigeria already has several laws and regulatory frameworks covering financial accountability, public procurement, anti-corruption, anti-money laundering, taxation, corporate regulation and the operations of non-governmental organisations and other entities receiving grants and donations.
It cited the Money Laundering (Prevention and Prohibition) Act 2022 as one of the key laws providing mechanisms for financial transparency and accountability.
BudgIT noted that the law requires banks and other businesses to conduct customer verification, maintain financial records and report suspicious transactions to relevant authorities.
It added that institutions such as the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC) already have powers to investigate and prosecute cases involving money laundering, terrorist financing and the misuse of donor or grant funds.
The organisation also pointed to the Companies and Allied Matters Act (CAMA) 2020, which regulates the registration and operations of companies, NGOs and other incorporated organisations through the Corporate Affairs Commission (CAC).
According to BudgIT, CAMA requires such organisations to maintain proper financial records, submit annual returns and comply with governance requirements, while giving the CAC powers to monitor compliance and take appropriate action where necessary.
It argued that establishing another regulatory commission would duplicate existing mandates, increase compliance costs, consume scarce public resources and create uncertainty for organisations providing humanitarian, development, health, education and social services.
BudgIT therefore urged the National Assembly to reconsider the necessity of the proposed legislation and instead focus on strengthening the implementation and enforcement of existing laws and regulatory frameworks.
The organisation also called for improved coordination among existing oversight agencies, greater public access to information through existing legal mechanisms, and constructive engagement with civil society organisations and development partners.
It further urged lawmakers to ensure that any regulatory reforms respect constitutional rights to freedom of association, expression and participation in public affairs.
“The need of the hour is not more legislation, but better implementation of the robust legal and institutional frameworks that already exist,” BudgIT said.
It maintained that strengthening existing laws and institutions would improve accountability without imposing unnecessary restrictions on the civic space, which it described as essential to Nigeria’s democratic and developmental aspirations.
The statement was signed by Open Alliance.
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