NGOs need better governance structure, not new commission – Experts

A groundswell of opposition has greeted the bill for the regulation of non-governmental organisations (NGOs) in Nigeria now before the House of Representatives.  When passed into law, the bill will affect non-for-profit organisations including, faith based organisations, civil societies, charities, and foundations. On Thursday, the Nigerian Institute of Advanced Legal Studies (NIALS) assembled experts from […]

A groundswell of opposition has greeted the bill for the regulation of non-governmental organisations (NGOs) in Nigeria now before the House of Representatives. 

When passed into law, the bill will affect non-for-profit organisations including, faith based organisations, civil societies, charities, and foundations.

On Thursday, the Nigerian Institute of Advanced Legal Studies (NIALS) assembled experts from NGOs, Corporate Affairs Commission (CAC), Ministry of Justice and MacArthur Foundation to discuss the challenges in the bill and how to reposition the non-profit sector to be more effective.

The NGO Bill proposed by the Deputy Leader of the House of Representatives, Umar Buba Jibril (APC, Lokoja/Kogi), seeks the establishment of an agency to be known as the NGO Regulatory Commission to issue licences to all NGOs, which will be renewed every two years.

The bill also seeks to jail for 18 months or impose a N500,000 fine on any NGO that spends its funds without the commission’s permission or operates without licence. To organise this, all NGOs are expected to submit reports to the board of the commission on the source of their funding and how it intends to expends.

The bill proposes that judgements against the commission cannot be enforced except with the express permission of the Attorney General of the Federation.

The sponsors of the bill say it is to promote transparency and accountability in the finances of NGOs, adding that similar laws are obtainable in many African and European countries.

But leaders of the civil society have faulted the bill as a repression of democratic values, rule of law, free speech, and liberty. Human rights activist, Chidi Odinkalu, described the bill as “the most dangerous piece of legislation that has come for consideration in the National Assembly since the return to civil rule in 1999.”

At the NIAL workshop with the theme, ‘Governance Structure for Not-for-Profit Organisations’, the suggestion for a new commission to oversee the activities of NGOs was not favourably received. However, the consensus was on the need for coordination by fostering the culture of governance within existing government institutions. 

The experts suggested the strengthening of the CAC to regulate the organisations in a way that does not lose sight of the NGOs coming up with self-regulatory governance structure. This will be such that interventionist donors will have parameters that are in place.

Speaking, the Director General of NIALS, Prof Adedeji Adekunle, said at the end of the workshop a draft policy document with recommendations that will guide decision by the government on NGOs will be produced.

“It is important their work is done within a framework of governance; a framework that eschews corruption, promotes transparency, and ensures that there is focus on project goals,” he said.

“This discussion has looked at the two parameters of self-regulation or regulation by an external body or regulation by way of fostering a culture of governance by which probably a government body like the CAC will prescribe a number of codes and guidelines that will enable not-for-profit-organisations to also step up in terms of their governance structure,” he added.

The director of the Centre for Socio-Legal Studies, Prof Seyi Akiseye-George, who called for more role for CAC in the regulation of NGOs, said the NGO Bill usurps the powers of the CAC and violates the constitution by being discriminatory.

“Politicians want to create an avenue to take political control of virtually every other thing in the country including the civil society, the media and the unions. All right-thinking Nigerians should reject the bill,” he said.

A delegate from MacArthur Foundation, USA, Joshua Mace, commended the passion and interest of professionals in Nigeria on the need to enhance the structure of not-for-profit organisations and make them attain international best practices.

The Country Director of MacArthur Foundation, Kole Shettima, noted that there is need for some agencies that are working with non-for-profit organisations such as National Planning Commission and CAC to set aside monthly or quarterly periods for a review of NGOs as a form of coordination of how they receive and spend funds.

In his presentation, a senior research fellow with NIALS, Prof Peter Akper (SAN) suggested a mix of good governance with regulatory control due to corruption and security challenges in the country.

“We should have a law that sets up parameters of what they should comply with. What is contained in the NGO Bill is that there should be a regulatory commission set up. I don’t subscribe to that because by the activities of the NGO they are registered by the CAC as non-profit organisation, and the CAC will be in a better position to regulate their activities than to go and build another structure as proposed in the bill,” he said.