The Senate has passed the Foreign Aid Management Bill for second reading, moving forward with proposed legislation designed to strengthen transparency, accountability and coordination in the management of foreign assistance, grants, donations, humanitarian support and concessional financing in Nigeria.
The bill, sponsored by Senator Ibrahim Hassan Dankwambo (PDP, Gombe North), seeks to establish a comprehensive legal framework that will improve oversight of donor-funded interventions and ensure they align with Nigeria’s national development priorities.
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), the proposed legislation introduces new mechanisms for monitoring foreign assistance.
Among its key provisions is the mandatory registration of all foreign aid received in Nigeria and the establishment of a national database to monitor donor-funded projects across the country.
Following its second reading, Senate President Godswill Akpabio referred the Foreign Aid Management Bill to the Senate Committees on National Planning and Economic Affairs, Finance, and Foreign Affairs for further legislative consideration. The committees are expected to submit their report within six weeks.
Leading debate on the bill, Senator Dankwambo said Nigeria continues to receive significant support from bilateral and multilateral partners through grants, humanitarian assistance, technical support and concessional financing.
However, he argued that the existing foreign aid system remains fragmented and lacks effective coordination. According to him, many donor-funded projects are implemented across Ministries, Departments and Agencies (MDAs) outside the national budget framework, resulting in duplication, poor alignment with national priorities and reduced value for public resources.
“Donor-funded projects are scattered across Ministries, Departments and Agencies, sometimes executed outside the national budget framework and occasionally duplicated or misaligned with national priorities,” Dankwambo said.
The senator explained that the bill derives its legal foundation from Sections 80 to 85 of the 1999 Constitution (as amended), which empower the National Assembly to oversee public funds and authorise the Auditor-General to audit public accounts.
He maintained that foreign assistance received and utilised within Nigeria should be treated as public resources and therefore be subject to constitutional oversight. Dankwambo also said the proposal complements the Fiscal Responsibility Act, 2007, by ensuring donor-funded projects are integrated into Nigeria’s fiscal planning instead of operating as off-budget expenditures.
Rather than creating a new government agency, the Foreign Aid Management Bill proposes a National Donor Coordination Framework built on existing government institutions.
The legislation also seeks to: establish mandatory registration for all foreign assistance, create a national database for donor-funded projects, integrate donor interventions into national development plans and annual budgets, require public disclosure of funding agreements, implementation progress and audit reports, introduce sanctions for non-registration, diversion or misuse of donor funds, false disclosures and execution of unapproved projects.
According to Dankwambo, the proposed legislation will strengthen fiscal discipline, eliminate duplication of projects and improve development outcomes through better coordination of foreign assistance.
He added that enhanced transparency and accountability would increase donor confidence, reinforce the National Assembly’s oversight responsibilities and restore public trust in the management of development resources. The senator also noted that the bill aligns Nigeria with internationally recognised standards on aid effectiveness by ensuring foreign assistance is strategically deployed, properly monitored and fully accounted for.
