Controversy is mounting across Nigeria’s civil society and religious communities over a proposed National Assembly bill seeking to introduce stricter regulatory requirements for non-governmental organisations, religious bodies and other non-profit institutions.

The proposed legislation, which is at the legislative stage, seeks to establish additional regulatory requirements for organisations operating as incorporated trustees, including periodic renewal of registration and greater disclosure of their activities and finances.

According to the National Assembly’s legislative process, a bill that passes second reading proceeds to committee consideration, where its provisions are subjected to detailed scrutiny before further legislative stages.

At the centre of the controversy are provisions critics say could give government significant powers over the continued operation of NGOs, churches, mosques and civil society organisations.

One of the most contentious aspects of the proposed framework is the reported requirement for non-profit organisations to renew their operating status periodically, with critics highlighting a two-year renewal cycle.

Under the proposal, organisations would face additional compliance obligations and would have to maintain valid regulatory status to continue their activities.

Supporters of tighter regulation argue that stronger oversight could improve transparency within the non-profit sector, particularly in relation to funding sources, financial management and accountability.

They also argue that greater scrutiny could help prevent legitimate organisations from being used as channels for money laundering, illicit financing or other unlawful activities.

The proposed framework has also generated concern over the extent to which government regulators could supervise the programmes and activities of non-profit organisations.

Critics fear that requirements for prior regulatory clearance of certain activities could create bureaucratic obstacles for humanitarian organisations, community-based groups and faith-based charities that often respond quickly to emergencies.

Civil society advocates have warned that excessive regulatory discretion could also affect organisations involved in human rights advocacy, governance monitoring and public-interest campaigns.

Another area of debate is financial transparency.

The proposed regulatory framework is expected to place greater emphasis on audited accounts, funding sources and disclosures relating to foreign grants and donations.

Proponents see such requirements as necessary safeguards for public accountability, particularly given the volume of funds handled by some large non-profit organisations.

Opponents, however, argue that additional reporting obligations could place disproportionate administrative and financial burdens on smaller organisations that depend largely on donations and volunteer support.

Religious organisations and rights advocates have raised broader constitutional concerns about the potential implications of the proposed regulation.

They argue that excessive government control could interfere with constitutionally protected freedoms, including freedom of association, expression and religion.

There are also concerns about whether regulators could use licensing or renewal powers selectively against organisations whose activities or positions are critical of government policies.

Supporters of the proposal are expected to argue that regulation would apply across the sector and that accountability requirements do not necessarily amount to interference with legitimate religious or civic activities.

Existing Regulatory Frameworks Under Scrutiny

The debate has also revived questions about whether Nigeria needs another layer of regulation for organisations already subject to existing requirements.

NGOs and incorporated trustees currently operate within a regulatory environment involving institutions such as the Corporate Affairs Commission and, depending on their activities and financial arrangements, other government agencies responsible for taxation and anti-money-laundering compliance.

Critics therefore question whether a new regulatory structure would simplify oversight or create additional layers of bureaucracy.

The National Assembly’s published legislative process provides for committee review after second reading, followed by further consideration before a bill can become law.

This means the proposed measures are not yet law and could still be amended, rejected or substantially altered during subsequent stages of consideration.

Public hearings and stakeholder consultations could therefore become a major battleground, with civil society organisations, religious leaders, lawyers and other stakeholders expected to present their positions on the proposed regulatory framework.

The controversy reflects a broader challenge facing policymakers: how to strengthen accountability and prevent abuse within Nigeria’s non-profit sector without undermining freedom of association, religious liberty and the ability of civil society organisations to operate independently.

For now, the proposed legislation remains under parliamentary consideration, with its eventual form likely to depend heavily on the outcome of committee deliberations and stakeholder engagement.