The Action Group on Free Civic Space (AGFCS) has expressed deep concerns about the potential implications of the Foreign Aid Regulation, Disclosure and Transparency Bill (SB 1034) for civic space and the operating environment of civil society organisations (CSOs), including non-governmental organisations (NGOs).
To this end, the Action Group on Free Civic Space has called on the National Assembly and other relevant stakeholders to:halt any attempt to pass the bill.
Rather than introducing new, overlapping laws, the group advocated for robustly enforcing the legal frameworks already in place for NGOs and CSOs.
The bill, which passed its Second Reading in the Nigerian Senate on July 22, 2026, seeks to regulate foreign aid in Nigeria and promote accountability and transparency in the receipt and utilisation of international resources.
Nigeria already has a range of laws and regulatory frameworks governing the activities of CSOs and NGOs, including requirements relating to registration, reporting, periodic filings, financial accountability and funding disclosure.
The group said in a statement emailed to PerSecondNews that against this backdrop, the introduction of another law covering substantially similar areas raises concerns about regulatory duplication and overregulation of the NGO sector.
It suggested that 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: “The AGFCS is also concerned about the proposed mandatory registration of NGOs. Such requirements, alongside other restrictive provisions of the Bill, have implications for the right to freedom of association guaranteed under Section 40 of the Constitution of the Federal Republic of Nigeria.
” It may also conflict with Nigeria’s obligations under international human rights frameworks that protect the right of individuals and groups to freely associate and organise.
“Regulatory requirements should therefore not become a barrier to the formation and legitimate operation of civil society organisations.
“We recognise the need to prevent the misuse of non-profit organisations for terrorist financing and other illicit financial activities.
“However, measures adopted for this purpose must be proportionate, targeted and risk-based, as research conducted by the AGFCS has shown that efforts to address terrorism financing risks can sometimes impose disproportionate regulatory burdens on legitimate NGOs, thereby restricting their ability to operate effectively.
“This approach is inconsistent with the spirit of Financial Action Task Force (FATF) Recommendation 8, which calls on governments to protect non-profit organisations from terrorist financing abuse through targeted, proportionate and risk-based measures, while ensuring that such measures do not unnecessarily disrupt legitimate charitable activities or undermine fundamental rights.”
It added: “Consequently, introducing restrictive layers of regulation ostensibly to address terrorism financing risks through NGO channels risks placing additional burdens on an already heavily regulated sector without necessarily addressing the underlying enforcement gaps.
“Against this backdrop, the Action Group on Free Civic Space calls on the National Assembly and other relevant stakeholders to: Halt any attempt to pass the Bill into law, strengthen and effectively implement existing laws and regulatory frameworks governing NGOs and CSOs, rather than introducing overlapping legislation.
“Address gaps in the enforcement of existing laws where such gaps exist, particularly in relation to financial accountability and the prevention of illicit financial flows.
“Meaningfully consult civil society organisations and other relevant stakeholders before pursuing any legislative or regulatory measures that affect the operations and funding of the NGO sector.
“The fight against terrorism financing and illicit financial flows is important. However, it must not come at the expense of legitimate civic activity or fundamental rights.”
The Action Group said Nigeria’s regulatory approach should strike a healthy balance between protecting national security and preserving an open and enabling environment in which civil society can operate independently and effectively.
A total of 23 Action Group members signed the statement, including 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 include GARGA Foundation, Headfort Foundation for Justice, Institutional and Sustainable Development Foundation (ISDF), MAYFRAME Development Initiative, Open Knowledge Development Initiative, Partnership for Social and Environmental Development Initiative (P4SEDI), and Restorative Justice for Africa Initiative (REJA).
Other signatories are 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).
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