By Boluwatife Oshadiya | July 23, 2026
Key Points
- The Senate has passed a bill seeking to regulate and improve transparency in the management of foreign aid, grants and donations through second reading
- The proposed legislation seeks to establish a legal framework for coordinating donor-funded projects and integrating them into Nigeria’s national accountability system
- The bill has been referred to three Senate committees, which are expected to report back within six weeks
Main Story
The Senate on Wednesday passed for second reading a bill seeking to strengthen the regulation, coordination, transparency and disclosure of foreign aid, grants and donations received by Nigeria, as lawmakers moved to address longstanding concerns over the management of donor-funded projects.
Sponsored by Senator Ibrahim Dankwambo (PDP–Gombe North), the proposed legislation, titled the Foreign Aid, Grants and Donations Regulation Bill, 2026 (SB. 1034), aims to establish a statutory framework for monitoring foreign assistance and ensuring greater accountability across Ministries, Departments and Agencies (MDAs), non-governmental organisations (NGOs) and sub-national governments.
Leading the debate during plenary, Dankwambo said Nigeria continues to receive substantial support from bilateral and multilateral development partners through grants, technical assistance, humanitarian interventions and concessional financing. However, he argued that the country’s foreign aid architecture remains fragmented, resulting in duplication of projects, weak oversight and poor alignment with national development priorities.
According to the former Accountant-General of the Federation, the bill is anchored on Sections 80 to 83 of the 1999 Constitution (as amended), which empower the National Assembly to oversee public funds and require proper accountability for public resources.
“The problem is not the absence of institutions, but the absence of a binding legal framework that coordinates them,” Dankwambo said during the debate.
He explained that while agencies such as the Federal Ministry of Finance, Budget Office, Debt Management Office and the Office of the Accountant-General already perform various oversight functions, there is currently no law compelling all stakeholders receiving foreign assistance to register projects, disclose funding and harmonise activities within a single national framework.
The proposed legislation would establish a National Donor Coordination Framework, create a national database for foreign aid and require donor-funded projects to align with Nigeria’s budgetary and development priorities.
What’s Being Said
Senator Adams Oshiomhole (APC–Edo North) backed the bill, warning that foreign funding could sometimes be used to finance activities capable of undermining national cohesion if left unchecked.
“I believe the bill should provide appropriate mechanisms for enforcement and sanctions in cases of non-disclosure. We have a responsibility to protect the peace, unity and stability of our nation,” Oshiomhole said.
Senate President Godswill Akpabio also endorsed the legislation, describing Dankwambo as well qualified to sponsor the bill because of his extensive experience managing Nigeria’s public finances.
“He has extensive knowledge of foreign grants and assistance and understands where some of these funds go. I believe nobody was better suited to bring this kind of bill to the Senate at this time than him,” Akpabio said.
What’s Next
- The bill has been referred to the Senate Committees on National Planning and Economic Affairs, Finance, and Foreign Affairs for detailed legislative review.
- The committees are expected to submit their report to the Senate within six weeks.
- If passed by both chambers of the National Assembly and signed into law by the President, the legislation would establish Nigeria’s first comprehensive legal framework governing the coordination and disclosure of foreign aid, grants and donations.
The Bottom Line: The proposed legislation signals the Senate’s push to bring foreign development assistance under a more transparent and coordinated national framework. If enacted, it could strengthen public accountability for donor-funded projects while improving alignment between international assistance and Nigeria’s long-term development priorities.
