Push Grows to Remove Banking Hurdles for Nigeria’s Non-Profit Sector

Efforts are intensifying among regulators, banks, and civil society groups to reduce financial access barriers facing non-profit organisations (NPOs) in Nigeria.

At a stakeholder meeting convened by Spaces for Change in Lagos, participants highlighted persistent regulatory challenges that limit non-profits’ ability to operate effectively within the banking system.

A key issue raised was the difficulty many NPOs face in opening and running bank accounts, largely due to stringent compliance rules and risk classifications.

According to Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change, a gap between regulatory changes and implementation is at the heart of the problem.

“Banks say they know the law has changed, but the Central Bank has not directed them to enforce it. We are the ones facing the consequences of that gap,” she said.

Although non-profits have historically been classified as high-risk entities by banks, she noted that ongoing training efforts are gradually shifting this perception.

Pattison Boleigha of Pattison Consulting Limited warned that restricted access to banking services is undermining the sector’s impact.

“One of the major challenges is the inability of NPOs to open and operate bank accounts… hindering their ability to deliver essential humanitarian services,” he said.

He also emphasised that not all non-profits should be treated as high-risk.

From a regulatory standpoint, Bawo Egbakumeh of the Compliance Institute Nigeria said improved dialogue is helping to clarify onboarding processes.

“There is now greater clarity on how NGOs operate and how they should be onboarded within the financial system,” he said.

Meanwhile, Confidence Obayuwana of the Nigeria INGO Forum highlighted the broader economic value of non-profits.

“The needs continue to increase, and the government alone cannot meet them… non-profit organisations play a critical role,” he said.
“When you contribute to reducing poverty, it expands market opportunities for private sector players.”

Participants also stressed the need for a unified onboarding framework across banks to streamline requirements, reduce compliance burdens, and improve access for smaller organisations.

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