Nigeria’s Proposed Foreign Aid Law Sparks Fears Over Civil Society Crackdown

ABUJA, Nigeria — A proposed law regulating foreign aid and donations in Nigeria has triggered fears that the government could gain sweeping powers over independent civil society organisations, potentially restricting groups that rely on international funding to conduct human rights, governance and accountability work.

The Foreign Aid (Regulation, Transparency and Disclosure) Bill was introduced in Nigeria’s Senate in May 2026. It seeks to establish a regulatory commission to oversee foreign aid, grants and donations entering the country.

Its sponsors say the legislation is intended to strengthen transparency and accountability, ensure foreign-funded projects support Nigeria’s development priorities, prevent duplication and improve public access to information about how foreign funds are used.

But Human Rights Watch says the proposed framework could go far beyond financial oversight, creating new avenues for government interference in the work of independent organisations.

The bill has already passed its first and second readings in the Senate and has been referred to the Senate Committee on National Planning and Economic Affairs.

The committee was given four weeks from July 22 to conduct public hearings and consult stakeholders. Its recommendations will then return to the Senate for consideration. If approved, the bill would still need to pass a third reading and final vote in the Senate, secure approval from the House of Representatives and receive presidential assent before becoming law.

Vague Clause Raises Concern

At the centre of the controversy is a provision requiring foreign aid-funded activities to “align with Nigeria’s national development plans and priorities.”

Human Rights Watch says the language is too broad and fails to explain clearly how compliance would be determined or what activities could be considered inconsistent with government priorities.

That uncertainty could have serious implications for organisations working on human rights, governance, anti-corruption and government accountability, particularly where their findings or advocacy challenge official policies or expose failures by public institutions.

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The bill reportedly provides for sanctions against organisations that fail to comply, including financial penalties, loss of operating licences and possible imprisonment.

Anietie Ewang, Nigeria researcher at Human Rights Watch, said civil society organisations must be able to operate independently if they are to perform their watchdog role effectively.

“Legislation that seeks to align foreign funding with government priorities risks expanding government control over independent civil society and suppressing dissent,” Ewang said.

A Recurring Battle Over NGO Regulation

The proposed legislation is not Nigeria’s first attempt to introduce tighter controls over civil society organisations.

A 2016 bill seeking to establish a Nongovernmental Organisations Regulatory Commission stalled following a public hearing the following year. A similar proposal introduced in 2020 was later withdrawn after facing opposition from lawmakers.

Human Rights Watch says the latest bill raises many of the same concerns.

The organisation also argues that Nigerian nonprofits are already subject to extensive regulation.

Civil society organisations are required to register with the Corporate Affairs Commission as incorporated trustees or through other applicable structures and must comply with annual reporting requirements.

They are also subject to oversight by the Special Control Unit Against Money Laundering, the Economic and Financial Crimes Commission, tax authorities and other regulatory bodies.

Human Rights Watch says the bill does not adequately explain why additional reporting requirements are necessary or how the proposed system would interact with existing regulatory obligations.

Rights and Constitutional Concerns

The debate also touches on Nigeria’s obligations to protect freedom of expression and association.

Those rights are guaranteed under Nigeria’s Constitution and protected under the International Covenant on Civil and Political Rights and the African Charter on Human and Peoples’ Rights, both of which Nigeria has ratified.

International human rights mechanisms have repeatedly recognised access to funding as an important part of the freedom of association.

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The United Nations special rapporteur on the rights to freedom of peaceful assembly and association has said organisations should be able to seek, receive and use resources, including funding from abroad.

The African Commission on Human and Peoples’ Rights has taken a similar position in its Guidelines on Freedom of Association and Assembly in Africa, which caution against restricting legitimate civil society activities simply because organisations receive foreign funding.

For Human Rights Watch, the issue is therefore not whether foreign aid should be transparent or properly accounted for. Rather, it is whether financial oversight could become a mechanism for controlling organisations whose work is critical of those in power.

‘Transparency Should Not Become a Pretext’

Human Rights Watch is urging Nigeria’s National Assembly to remove provisions that could give government authorities excessive influence over how independent organisations receive funding or conduct their work.

“Transparency and accountability are legitimate objectives, but they should not become a pretext to undermine the independence of civil society,” Ewang said.

“Nigeria should not create new layers of regulation that give the authorities excessive control over organisations simply because they receive foreign funding.”

The bill now enters a critical stage as the Senate committee prepares to hear from civil society organisations and other stakeholders.

The outcome could have implications beyond Nigeria. Across Africa, governments are increasingly grappling with questions about foreign funding, NGO accountability and national sovereignty, while civil society groups warn that financial regulation can easily become a tool for restricting dissent.

For Nigeria’s independent organisations, the coming public hearings could therefore determine whether the proposed law becomes a framework for greater transparency or a new instrument of state control.