The Open Alliance has rejected the proposed Foreign Aid (Regulation, Transparency and Disclosure) Bill, 2026, warning that the legislation could unnecessarily expand government control over civil society and shrink Nigeria’s civic space.
The group, in a statement issued on Thursday, said the proposed legislation, sponsored by Senator Ibrahim Hassan Dankwambo, would create an additional layer of bureaucracy despite the existence of laws and institutions already empowered to monitor foreign aid, grants and financial transactions.
While acknowledging the importance of transparency, accountability and proper disclosure in the management of foreign aid, Open Alliance argued that the proposed bill was unnecessary and could create significant compliance burdens for organisations operating in Nigeria.
“We are deeply concerned that the proposed legislation is unnecessary and risks creating an additional layer of bureaucracy that could undermine Nigeria’s civic space,” the group said.
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It expressed particular concern over provisions requiring mandatory registration of foreign aid, as well as proposed powers to demand information, conduct inspections, impose sanctions and regulate recipients of foreign assistance.
According to the organisation, such provisions could be used to interfere with the legitimate activities of civil society organisations, community based organisations, faith based organisations, research institutions and humanitarian groups.
The group argued that Nigeria already has several laws covering financial accountability, anti corruption, anti money laundering, taxation, corporate regulation and the operations of organisations receiving grants and donations.
It specifically cited the Money Laundering (Prevention and Prohibition) Act 2022, which requires financial institutions and other businesses to maintain records and report suspicious transactions to relevant authorities.
Open Alliance also pointed to the roles of the Nigerian Financial Intelligence Unit and the Economic and Financial Crimes Commission in investigating and prosecuting financial crimes, including money laundering, terrorist financing and the misuse of donor or grant funds.
The group further cited the Companies and Allied Matters Act 2020, which provides for the registration and regulation of companies, non governmental organisations and other incorporated organisations.
According to Open Alliance, these existing frameworks already give government agencies extensive powers to monitor financial transactions, enforce reporting obligations and take action against organisations that violate the law.
“Rather than creating a new regulatory commission with overlapping mandates,” the group said, the government should strengthen the implementation of existing laws and improve coordination among oversight institutions.
It warned that establishing another regulatory body could duplicate existing functions, increase compliance costs, consume public resources and create uncertainty for organisations involved in humanitarian, development, health, education and social services.
Open Alliance therefore urged the National Assembly to reconsider the proposed legislation and focus instead on strengthening existing regulatory frameworks.
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The group also called for greater public access to information, constructive engagement between government, civil society and development partners, and reforms that 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,” it said.
It added that strengthening existing laws and institutions would provide greater accountability without imposing unnecessary restrictions on the civic space considered essential to Nigeria’s democratic and developmental aspirations.
