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HOW TO ESTABLISH AN NGO IN NIGERIA

NGO

Starting a Non-Governmental Organization (NGO) is a great way to contribute to social development, improve communities, and address societal issues in Nigeria. Whether your NGO is focused on education, healthcare, poverty alleviation, or human rights, establishing one involves a detailed process. It requires a solid understanding of the country’s legal framework and the regulatory obligations established by the government.

The initial step is to become acquainted with the relevant laws, especially the Companies and Allied Matters Act (CAMA) of 2020, which governs the registration of NGOs. This legislation provides the criteria for an organization to be officially recognized as a legal entity.

A key requirement for an NGO is to have a specific and clear purpose that focuses on charitable, educational, or social goals. This purpose must be clearly articulated in the organization’s constitution, which outlines its operational and governance structure. Below is a detailed guide on how to establish an NGO in Nigeria, but first what is an NGO?

Definition of an NGO?

A non-governmental organization (NGO) is an independent group that aims at improving social conditions without government control. Usually non-profit, NGOs are also referred to as civil society organizations. They operate at local, national, and international levels to support various social or political causes, such as humanitarian efforts or environmental protection.

For instance, NGOs may focus on areas like health, education, infrastructure development, advocating for minority rights, supporting the poor, or reducing crime. Under Section 590 of the Companies and Allied Matters Act, a Non-Governmental Organization (“NGO”) is an association or body of persons registered as “Incorporated Trustees” for the purpose of advancing religious, educational, literary, scientific, social/cultural development, sporting, and charitable causes.

Entities that fall under this category include:

  • Churches
  • Social clubs
  • Unions
  • Groups
  • Associations, among others.

What Are the Requirements for Starting an NGO in Nigeria?

To register an NGO/Association under Incorporated Trustees in Nigeria, the following requirements must be fulfilled:

  • Proposed Name: Select a unique name for the NGO/Association, ensuring it does not resemble any existing organization. To comply with this requirement, it is recommended to perform a name search through the Corporate Affairs Commission (CAC) database before finalizing your selection.
  • Trustees: A minimum of two trustees, each at least 18 years old, of sound mind, and providing their personal details, including email addresses, phone numbers, and residential addresses.
  • Objectives: Clearly outline the objectives and operational scope of the NGO/Association.
  • Registered Address: A physical address in Nigeria where the NGO/Association will be registered.
  • Identification Documents: Valid identification for trustees, such as a national ID card, international passport, or driver’s license.
  • Constitution: A comprehensive constitution that defines the governance structure and operational procedures of the NGO/Association.

Steps to Establish an NGO in Nigeria

The following is a guide to help you start an NGO in Nigeria.

1. Create a Detailed Plan for Your NGO

Start by outlining your organization’s beliefs, mission, and purpose. As you draft your mission and purpose statement, clearly define the overall goals of the NGO, the specific activities it will engage in, and the core values it will uphold.

2. Choose a Name for Your NGO

The name of your NGO should reflect its purpose and activities. It must be unique and not already in use by another registered organization. A good name will help with branding and also make your organization easily recognizable.

3. Appoint Trustees

Trustees must be at least 18 years old, of sound mind, not undischarged bankrupt, and not convicted of any fraud or dishonesty-related offenses within the last five years.

4. Prepare Your Documentation

The documentation required to start an NGO includes:

  • Memorandum of Association which outlines the objectives, structure, and operational guidelines for your NGO.
  • Articles of Association that detail the internal rules and regulations of the NGO.
  • Governance Structure that shows a list of founding members, trustees, and officers of the NGO.
  • A valid address where the NGO’s office will be based.
  • A clear statement of the NGO’s goals and mission.

5. Consult an Accredited Lawyer

It is advisable to consult a professional lawyer accredited by the Corporate Affairs Commission (CAC) to assist with the following:

  • The lawyer will conduct a search at the CAC registry to confirm the availability of your chosen name. Only unique names that do not conflict with an existing registered organization can be reserved. This process usually takes about 48 hours.
  • The corporate lawyer will publish a notification of your intent to register the NGO in three national daily newspapers, including a local newspaper circulating where your NGO operates. This will include the NGO’s name, trustees, objectives, and a call for objections within 28 days.
  • The lawyer will also create the constitution, outlining the NGO’s internal rules, governance structure, aims, and objectives.
  • The solicitor lawyer will draft minutes of meetings documenting the appointment of trustees, approval of the organization’s purpose, voting patterns, and authorization for registration.
  • Not only that, the lawyer will compile all incorporation documents, including application forms, published notices, the constitution, meeting minutes, trustee photographs, and the NGO’s common seal.
  • All the required documents will be filed with the CAC for NGO registration.
  • Once the documents are processed, the solicitor will collect the official Certificate of Incorporation from CAC on your behalf.

6. Obtain a Tax Identification Number

To operate legally and maintain transparency, your NGO will need to obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). This number is used to track all financial activities and ensure that the organization complies with tax laws, even though most NGOs are exempt from paying taxes.

7. Open a Bank Account in the NGO’s name

This step is important as it formally recognizes the NGO and enables you to receive financial support and donations. You will need the NGO’s Certificate of Incorporation to open the account. Note that NGOs must maintain proper accounting records and submit audited financial statements to the relevant authorities. This helps ensure that funds are used for the intended purposes.

8. Establish the Management Structure

Every NGO needs a governance structure that will oversee its operations. Typically, this includes:

  • Board of Trustees who are responsible for making high-level decisions and ensuring that the organization follows its stated mission. Trustees should have a genuine interest in your cause and bring a wealth of knowledge or expertise to the table.
  • Executive Management responsible for the day-to-day operations of the NGO. They carry out the decisions made by the Board and ensure the implementation of the organization’s programs.
  • Staffing, which depends on the size and scope of your NGO, you may also need to hire staff, volunteers, or contractors to support your activities.

Conclusion

The NGO registration process in Nigeria can take several months, depending on the thoroughness of the application and the current workload at the Corporate Affairs Commission. Once your NGO is legally established, it is time to launch your programs and activities. 

By following the proper legal processes, creating a solid governance structure, and remaining transparent in your operations, you can establish a sustainable organization that makes a real impact in Nigeria. It is highly advisable to engage a law firm to guide you through both the incorporation and post-incorporation matters for your NGO, as well as to address key issues related to its governance structure and internal affairs.