The Personalized Regulatory Compliance and Internal Governance Clinic training organized by Spaces for Change aimed at helping Non-Profit Organizations (NPOs) operating in Nigeria to deepen their understanding of regulations and compliance requirements applicable to the non-profit sector in Nigeria and to strengthen their internal governance controls within the organization. To impart the knowledge and skills that will enable non-profits to keep up with the constant onslaught of new and changing regulatory requirements and also lower or eliminate risks of governmental restrictions. In her presentation, Mrs. Shola Olutayo in her presentation highlighted the role of NPOs to comply with government regulations in their endeavors. Compliance includes corporate government fillings such as Bi-annual Statements of affairs to the Corporate Affairs Commission (CAC), first fillings should be done on or before the 30th June and latest 15th July of every year, and second fillings should be done on or before the 31st December every year or latest 15th January the following year. Other fillings are the Annual Returns to the CAC. NPOs were encouraged to register with the Federal Inland Revenue Service (FIRS). Mrs. Shola also stated the tax emption status of NPOs which excludes the engagement in a profit-making business.
Statutory obligations of NPOs include maintaining accurate records of employees, donors, partners, etc. Maintaining proper books of accounts, payment of Value Added Tax (VAT) for profit-making businesses and services carried out by the NGO, deduction of withholding tax and PAYE, etc. Failure to comply with such regulations will lead to penalties under the laws of Nigeria.
NPOs were advised to know the law as regards financial transactions in the Money Laundering Prevention and Prohibition Act 2022 and the Terrorism Prevention and Prohibition Act 2022 and also to make reports to the Special Control Unit Money Laundry (SCUML) of The Economic and Financial Crimes Commission (EFCC), reports such as the Suspicious Transaction/Activity Report and NPO Quarterly Reports on donations from local and foreign donors which is equivalent or exceeds $10,000. NPOs were warned against receiving donations in millions via cash, such donations should be given to the organization via bank transfers. Also, goods to be received from a foreign country worth $10,000 and above should be reported to the Nigerian Customs Service. NPOs were encouraged to make reports to the Central Bank of Nigeria (CBN) and the Security and Exchange Commission (SEC).
NPOs were encouraged to create Internal Policies within the organization which is structures that make the organization work better, ensure growth and sustainability, reduce risk, increase efficiency, create checks and balances within the organization, and help everyone to identify their role and reporting strategies when there is a need to make any report and enhance organization’s funding. Such internal policies include Finance, the internet, Anti-money Laundering and Countering Financing of Terrorism (AML/CFT), Gift and donation, conflict of interest, whistleblowing policy, staff handbook, etc.
The organizers of the training, Spaces for Change (S4C) gave NGOs present the opportunity to request guidance and counsel in the formulation of their internal policies. This can be done by writing officially to S4C and upon consideration, a meeting will be organized for such NGO to review existing policies and formulate new policies.


