Regulators, financial institutions and civil society groups have agreed to standardise the onboarding process for non-profit organisations (NPOs) across Nigerian banks, in a move aimed at easing restrictions that have long hindered their operations.
The decision was reached at the fourth general meeting of the Multi-Stakeholder Working Group on Charities (MSWGC) in Lagos, with participation from key agencies including the Economic and Financial Crimes Commission (EFCC), Special Control Unit Against Money Laundering (SCUML), Nigerian Financial Intelligence Unit (NFIU), Central Bank of Nigeria (CBN), Corporate Affairs Commission (CAC), alongside commercial banks and non-profit representatives.
Stakeholders raised concerns that anti-money laundering regulations were being applied too broadly, making it difficult for legitimate charities to open bank accounts, access funds and carry out humanitarian programmes, despite operating within legal and regulated frameworks.
Executive Director of Spaces for Change, Victoria Ibezim-Ohaeri, noted that many organisations are increasingly unable to access donations needed for their projects, warning that excessive restrictions risk pushing compliant groups out of the formal financial system.
Participants identified the blanket classification of NPOs as high-risk customers as a major issue, contrary to global standards, and called for better alignment among regulators and banks, especially amid lingering uncertainty over recent amendments to money laundering and terrorism laws, while acknowledging progress made through ongoing engagements.