The Senate has passed the Foreign aid management bill for second reading, moving forward with legislation aimed at strengthening transparency, accountability and coordination in the management of foreign assistance, grants, donations, humanitarian support and concessional financing across Nigeria. The proposed legislation seeks to establish a comprehensive legal framework to ensure donor-funded interventions align with national development priorities while improving oversight of foreign-funded projects.
Sponsored by Senator Ibrahim Hassan Dankwambo (PDP, Gombe North), the bill is officially titled: “A Bill for an Act to Provide for the Coordination, Transparency, Accountability, Registration, Disclosure and Effective Management of Foreign Assistance, Grants, Donations, Humanitarian Support and Concessional Financing in the Federal Republic of Nigeria and for Related Matters, 2026 (SB. 1034).”
If enacted, the Foreign aid management bill will require mandatory registration of all foreign assistance received in Nigeria and create a national database to monitor donor-funded programmes. Following its second reading, Senate President Godswill Akpabio referred the proposal to the Committees on National Planning and Economic Affairs, Finance, and Foreign Affairs for further legislative consideration, directing them to submit their report within six weeks.
Leading debate on the bill, Dankwambo said Nigeria remains a major beneficiary of grants, humanitarian assistance, technical support and concessional financing from international development partners.
However, he argued that foreign-funded projects are often fragmented across Ministries, Departments and Agencies (MDAs), with some operating outside the national budget framework or duplicating existing initiatives. According to him, the lack of coordination reduces efficiency, weakens value for money and undermines public confidence in the management of development resources.
The legislation proposes several reforms, including: mandatory registration of all foreign aid and donor-funded projects, creation of a national database for monitoring interventions, integration of donor-funded projects into national budgets and development plans, public disclosure of funding agreements, implementation reports and audit findings, penalties for non-registration, diversion or misuse of donor funds, false disclosures and execution of unauthorised projects.
Dankwambo explained that the bill is backed by Sections 80 to 85 of the 1999 Constitution, which empower the National Assembly to oversee public funds and authorise the Auditor-General to audit public accounts. He added that the proposal complements the Fiscal Responsibility Act, 2007, by ensuring foreign assistance forms part of Nigeria’s fiscal planning instead of remaining off-budget.
According to the lawmaker, the Foreign aid management bill will strengthen fiscal discipline, eliminate duplication of donor-funded projects and improve development outcomes through better coordination. He also said the legislation would reinforce legislative oversight, improve transparency and accountability, restore public confidence in the management of development resources, and enhance donor confidence by aligning Nigeria’s aid management system with international best practices.
