The Senate on Wednesday commenced legislative action on a far-reaching bill aimed at overhauling the management of foreign aid and donor-funded interventions in Nigeria by placing billions of naira channelled through non-governmental organisations (NGOs), development partners and sub-national entities under stricter government regulation and parliamentary oversight.
The proposed legislation, sponsored by Senator Ibrahim Hassan Dankwambo (Gombe North), passed second reading following concerns by lawmakers over weak accountability, poor financial transparency and the national security implications of unregulated foreign funding.
If enacted, the bill will establish a comprehensive legal framework requiring all donor-funded projects and foreign assistance programmes operating in Nigeria to be registered, monitored and integrated into the country’s fiscal and development planning process.
Leading the debate, Dankwambo noted that although Nigeria is one of Africa’s largest recipients of grants, humanitarian assistance, technical support and concessional financing from bilateral and multilateral partners, there is currently no unified legal mechanism for coordinating or tracking the inflow and utilisation of such funds.
He said donor interventions are implemented through a fragmented system across ministries, departments and agencies, with many projects operating outside the national budget, resulting in duplication, weak coordination and limited accountability.
According to him, the bill proposes the establishment of a National Donor Coordination Framework, a central database of donor-funded projects, mandatory registration of all foreign-funded interventions, integration of donor programmes into government budgets, public disclosure of funding and implementation details, and sanctions for the diversion, misuse or non-registration of foreign assistance.
The proposal received broad support from senators, who expressed concern that significant donor funds channelled through NGOs and state governments currently operate with limited public oversight.
Deputy Senate President Barau Jibrin said while donor funds received directly by the Federal Government are usually reflected in the national budget, substantial resources routed through NGOs remain largely outside public scrutiny.
“We can’t tell what money goes into the coffers of NGOs. Fraudsters set up bogus, pseudo NGOs and collect money from there,” he said.
Senate Chief Whip Tahir Monguno described the bill as timely, arguing that development partners often determine how aid is disbursed without sufficient coordination with domestic institutions.
Senator Adamu Aliero, a former Kebbi State governor, recalled previous Senate oversight exercises that uncovered cases where donor funds could not be properly accounted for. He urged that the legislation expressly cover NGOs and state governments to strengthen legislative oversight.
Chairman of the Senate Committee on Finance, Senator Sani Musa, said the bill would improve transparency, boost donor confidence and align Nigeria’s aid management system with international best practices.
He also raised security concerns over donor-funded activities allegedly operating without adequate government scrutiny.
“Most of the aids coming to so-called NGOs are not subjected to scrutiny. We have seen instances where such arrangements create security concerns because we do not know who is accounting for what. Is it insurgents taking money meant for victims?” Musa queried.
Former Edo State Governor, Senator Adams Oshiomhole, backed the legislation, insisting that all foreign donor funds entering Nigeria should be fully disclosed, documented and subjected to legislative oversight. He also called for mandatory disclosure by NGOs and civil society organisations, alongside stiff penalties for non-compliance.
Senate President Godswill Akpabio also supported the bill, warning that foreign funding operating outside an effective regulatory framework could threaten national security and weaken accountability.
The bill was subsequently referred to the Senate Committees on National Planning and Economic Development and Finance, which were directed to report back within four weeks.
