…as experts warn against over-regulating civil society

Despite Nigeria’s recognition as compliant with the Financial Action Task Force (FATF) standards since late 2025, experts on Wednesday warned that sustaining the country’s progress will depend on preventing regulatory excesses, improving evidence-based oversight and strengthening collaboration between government agencies, financial institutions and civil society organisations.

 

The concerns were raised at the 3rd Africa High-Level Civil Society Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Conference in Abuja, where speakers argued that compliance should not become an excuse for burdensome regulations that undermine legitimate humanitarian and development work. Delivering the keynote address, United Nations Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism, Prof. Ben Saul acknowledged Nigeria’s achievement but stressed that many countries still misapply FATF Recommendation eight by treating all non-profit organisations (NPOs) as potential terrorist financing risks. Saul said governments must move away from blanket regulations towards targeted, evidence-based and proportionate oversight.

 

He warned that excessive registration requirements, intrusive financial reporting, licensing, restrictions on foreign funding and multiple layers of oversight continue to discourage humanitarian organisations and human rights groups across several countries. He also identified weak and outdated national risk assessments, deliberate misuse of counter-terrorism measures to suppress civic space, and the refusal of banks to provide services to non-profit organisations as major shortcomings requiring urgent attention.

 

According to him, governments should institutionalise regular consultations with civil society, improve the quality of risk assessments and establish effective channels for organisations to challenge unjustified regulatory actions. Representing the Chairman of the Economic and Financial Crimes Commission (EFCC), Director of the Special Control Unit Against Money Laundering (SCUML), Harry Erin, said Nigeria’s reforms had demonstrated that trust between regulators and civil society remains the foundation for effective implementation of FATF Recommendation 8.

 

He noted that Nigeria’s inter-agency collaboration involving the EFCC, SCUML, Nigerian Financial Intelligence Unit (NFIU), Corporate Affairs Commission (CAC), Office of the National Security Adviser and civil society organisations enabled authorities to identify only those organisations genuinely vulnerable to terrorist financing, while protecting legitimate charitable activities.

 

Erin said compliance should produce stronger institutions, greater transparency and public confidence rather than simply satisfying international assessment requirements. Executive Director of Spaces for Change, Victoria Ibezim-Ohaeri, said Nigeria’s progress was the product of nearly a decade of dialogue, policy reforms and sustained political commitment. She recalled that early engagements between regulators and civil society were characterised by mistrust and confrontation, but evolved into partnerships that resulted in local experts participating in national risk assessments and reforms that removed non-profit organisations from the list of obliged entities under the anti-money laundering framework.

 

However, she cautioned that Nigeria must not become complacent following its FATF compliance rating. According to her, institutions should continue reviewing the effectiveness of reforms instead of waiting for international assessors to identify deficiencies, while ensuring unintended consequences affecting non-profit organisations are promptly addressed. Ibezim-Ohaeri added that Nigeria’s experience now offers practical lessons for countries including Ghana, Congo and Burkina Faso seeking to implement FATF standards without shrinking civic space. Board Chair of Spaces for Change, Samuel Diminas, said Africa still loses more than $88 billion annually through illicit financial flows despite improvements in anti-money laundering systems.

 

He urged governments to ensure compliance measures do not unintentionally exclude legitimate organisations from banking services or weaken civil society’s role in promoting transparency and accountability. Also speaking, the Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, represented by an official, said the commission would continue strengthening beneficial ownership transparency and working with regulators and civil society to sustain Nigeria’s compliance with international standards.