In 2025, for the first time, the role of local NGOs in Nigeria’s economy was officially recognized under the Other Services Sector of the rebased Nigerian economy. The adjustments made to the economy’s structure reflected a notable increase of 6.2 percent in this sector due to the inclusion of contributions from Nigerian NGOs to the GDP.
As the world celebrates World NGO Day on February 27, the decision to rebase the Nigerian economy to account for NGO contributions can be seen as a progressive measure, resonating with the global acknowledgment given to non- profit organizations by the United Nations.
In Nigeria, the 2026 World NGO Day comes at a time marked by the sudden withdrawal of aid from USAID and the cessation of its NGO localization program, which aimed to bolster local NGOs in the field of development and humanitarian aid. Additionally, 2026 has seen a substantial drop in financial support from bilateral partners, as they redirect resources to address new national priorities, ultimately weakening the local NGO landscape. Many Nigerian NGOs are now struggling to meet payroll obligations for their staff and volunteers, resulting in numerous project and office closures.
Amid these challenges, the development Research and Projects Centre (dRPC), a local NGO, initiated the NGO Support Initiative (NSI) in June 2025 to provide much-needed support to the beleaguered sector. The NSI program allocated N5 million to registered NGOs that had to wind down their USAID-funded initiatives.
With initial funding from a Ford Foundation BUILD grant, 17 NGOs across 11 states received N5 million each, enabling them to implement projects focusing on education, health, gender-based violence prevention, women’s rights, humanitarian aid, and livelihoods. Furthermore, participating NGOs had access to a comprehensive 5-module training designed to bolster their sustainability and resilience, facilitated by eight experienced NGO trainers from the dRPC's Gates Foundation-supported PAS project.
The candidate list for the 17 NGOS included 225 top-performing organizations, which had responded to dRPC’s public call for applications, showcasing their commitment to delivering vital grassroots services. The approval of these NGOs' proposals exemplifies their capability and dedication, warranting commendation for their ongoing efforts in the Nigerian context.
The decline in the Nigerian NGO sector poses potential risks to the growth of the Other Services Sector within the newly rebased economy. While the Nigerian government deserves acknowledgment for taking a forward-thinking step by quantifying NGOs' contributions to the economy, it must also be encouraged to continue its support for local NGOs.
To foster growth within the Other Services Sector, the government could explore ways to create a conducive environment for development partners, especially bilateral entities, to mimic the initiatives taken by Global Affairs Canada, JICA, the Hungarian Embassy, and Irish Aid, which have provided small grants to local NGOs. This supportive approach could involve the expedited approval and implementation of two essential draft policies—the National Localisation Policy and the National ODA Policy—which have languished for several years.
Furthermore, the government should be proactive in mobilizing new local resources for NGOs within contemporary community development initiatives like the Renewed Hope Ward Development Programme (RHWDP). Additionally, financial incentives might be introduced for private sector philanthropists, such as the Dangote Foundation, to collaborate with intermediary NGOs like dRPC to alleviate the high costs associated with engaging local organizations as they broaden their development support.
Another critical measure would be for the government to partner with World Bank programs in Nigeria to organize crucial procurement orientation meetings for NGOs aimed at facilitating the inclusion of new partners in the development process. The Bureau of Public Procurement’s current national consultations provide an excellent opportunity to better understand and address the needs of NGOs in the public procurement landscape, deserving recognition for this commendable initiative that acknowledges the potential of the Nigerian NGO sector.
NGOs play an integral role as partners in the realm of development rather than competitors. Through effective alignment with government policies and programs, they contribute significantly to socio-economic development. Wishing everyone a meaningful World NGO Day.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!