Senate Advances Foreign Aid Bill, Demands National Database to Track Donor Funds

The Nigerian Senate has advanced a bill aimed at reforming the management of foreign assistance, grants, donations, humanitarian support and concessional financing in the country, with lawmakers seeking greater transparency, accountability and coordination in the use of donor resources.

The bill, 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)”, passed second reading during Wednesday’s plenary session.

Sponsored by Senator Ibrahim Hassan Dankwambo (PDP, Gombe North), the proposed legislation seeks to establish a unified legal framework for managing foreign aid received by Nigeria from bilateral partners, multilateral institutions, international organisations and other development partners.

The bill proposes the mandatory registration of foreign assistance programmes and the creation of a national database that would capture donor-funded projects across the country.

Senator Dankwambo, while leading the debate on the general principles of the bill, argued that Nigeria remains a major recipient of foreign assistance through grants, technical support, humanitarian interventions and concessional financing, but the current system suffers from weak coordination and limited transparency.

According to him, donor-funded projects are often spread across Ministries, Departments and Agencies (MDAs), with some operating outside the national budget framework, creating challenges such as duplication, inefficiency and poor alignment with national development priorities.

“Donor-funded projects are scattered across Ministries, Departments and Agencies (MDAs), sometimes executed outside the national budget framework, and occasionally duplicated or misaligned with national priorities. This weak coordination undermines efficiency, reduces value for money and, in some cases, erodes public trust,” Dankwambo said.

The lawmaker said foreign assistance, despite coming from external sources, represents public resources when deployed within Nigeria and should therefore be subjected to proper oversight and accountability mechanisms.

He said the bill derives constitutional backing from Sections 80 to 85 of the 1999 Constitution (as amended), which provide for legislative oversight of public finances and empower the Auditor-General to examine public accounts.

Under the proposed framework, all foreign aid received by Nigeria would be registered and captured in a central database to improve tracking and monitoring.

The legislation also provides for the integration of donor-funded projects into national development plans and government budgets, ensuring that external interventions complement Nigeria’s priorities rather than operate independently.

It further seeks public disclosure of funding agreements, implementation reports and audit findings relating to foreign assistance programmes.

The bill proposes sanctions for failure to register foreign aid, diversion or misuse of funds, false disclosures and execution of projects that have not received appropriate approval.

Dankwambo said the reforms would help eliminate duplication of donor interventions, strengthen fiscal discipline and improve the impact of development assistance across sectors.

The sponsor explained that the proposed law would not create new government institutions but would strengthen existing structures through the establishment of a National Donor Coordination Framework.

He said the framework would provide a coordinated approach to managing foreign assistance while improving collaboration between government agencies, development partners and oversight institutions.

According to him, the legislation would also enhance donor confidence by providing clearer rules for transparency, reporting and accountability.

He added that improved management of foreign aid would help Nigeria achieve better development outcomes by ensuring that donor resources are directed towards priority areas.

Following the debate, Senate President Godswill Akpabio referred the bill to the Senate Committees on National Planning and Economic Affairs, Finance, and Foreign Affairs for further legislative work.

The committees were given six weeks to review the proposal and submit their recommendations to the chamber.

The move comes amid growing calls for improved management of development resources in Nigeria, where foreign-funded projects play significant roles in sectors including healthcare, education, humanitarian response, infrastructure and agriculture.

If passed into law, the legislation would introduce one of the most comprehensive frameworks for monitoring and coordinating foreign assistance in Nigeria, potentially changing how donor-funded programmes are planned, implemented and evaluated.

The bill will now undergo committee scrutiny, stakeholder consultations and further legislative processes before it can become law.