Senate Demands Transparency In Foreign Aid To Nigeria

According to Ireporter Online, the proposed legislation aims to establish a comprehensive legal framework for regulating grants, humanitarian assistance and other forms of foreign support received by government agencies, non-governmental organisations (NGOs) and state governments.

The bill, sponsored by Senator Ibrahim Hassan Dankwambo, received broad support from lawmakers who expressed concerns over the management of billions of naira in donor funds entering the country, particularly those channelled through NGOs without adequate public scrutiny.

Leading the debate, Dankwambo stated that Nigeria remains one of the largest beneficiaries of grants and technical assistance from international development partners but noted that the current system for managing such funds is fragmented, poorly coordinated and lacking in transparency.

He explained that many donor-funded projects are executed outside the national budget framework and spread across various Ministries, Departments and Agencies, resulting in duplication of projects, weak coordination and limited accountability.

The proposed legislation seeks to bring all foreign aid received in Nigeria under constitutional oversight while integrating donor-funded interventions into the country’s fiscal and development planning processes.

Among its key provisions are the establishment of a National Donor Coordination Framework, compulsory registration of all donor-funded projects, the creation of a national database for foreign assistance, mandatory public disclosure of funding and project implementation, as well as penalties for non-registration, diversion or misuse of donor funds.

Several senators backed the proposal, describing it as a timely initiative that would improve transparency and strengthen public confidence in the management of foreign assistance.

Deputy Senate President Barau Jibrin observed that while aid received directly by the Federal Government is usually reflected in the national budget, funds disbursed to NGOs and state governments often remain outside effective public oversight.

He expressed concern that some organisations may be receiving donor funds without adequate accountability, stressing the need for stricter monitoring of such financial inflows.

Senator Adamu Aliero also supported the bill, arguing that improved regulation of donor assistance would encourage greater confidence among development partners while enhancing the National Assembly’s oversight responsibilities.

Chairman of the Senate Committee on Finance, Senator Sani Musa, noted that the legislation would align Nigeria’s donor funding framework with international best practices and strengthen transparency in the management of foreign assistance.

He further raised concerns about the potential security risks associated with poorly regulated donor funds, warning that inadequate oversight could allow resources to be diverted for unlawful activities.

Senator Adams Oshiomhole called for full disclosure of all foreign donor funds entering Nigeria and advocated strict sanctions for organisations that fail to comply with the proposed law.

Senate President Godswill Akpabio also endorsed the bill, cautioning that unregulated foreign financial inflows could pose threats to national security if not properly monitored.

Following the debate, the Senate referred the bill to its Committees on National Planning and Economic Development and Finance for further legislative consideration, directing both panels to submit their report within four weeks.