CSOs lament poor access to direct funding

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A new study assessing Nigeria’s humanitarian space has highlighted persistent challenges confronting local Non-Governmental Organisations, particularly limited access to direct funding and unequal power relations compared to international organisations.

The report, titled Analysis Report: Localisation Barometer Nigeria 2024–2025, examined the operating humanitarian environment and the roles played by donors, International Non-Governmental Organisations, United Nations agencies and National Non-Governmental Organisations.

The study, according to a statement by the CACO Chairman, Mr Peter Egwudah, was implemented in eight countries, including Nigeria.

The report identified that despite their central role in humanitarian response, local NGOs still struggle to find their voice.

According to the report, unequal power dynamics continue to exist between INGOs and NNGOs, even though the latter play an overwhelming role in service delivery, especially at the community level.

Comparing funding access, the report revealed that only 27 per cent of NNGOs surveyed received direct funding, compared to 80 per cent of INGOs.

While INGOs secure almost half of their funds directly, NNGOs receive just 21 per cent and rely mainly on UN funding channels such as the Nigeria Humanitarian Fund.

Despite recording similar proposal success rates of 52 per cent, NNGOs were found to develop far fewer proposals on average, reflecting limited donor networks, weak visibility and a lack of dedicated proposal-development resources.

In financial terms, the report showed that NNGOs’ budgets are about 68 per cent lower than those of INGOs, largely because national organisations are often confined to implementation roles within specific activities.

This, it noted, limits both their visibility and their capacity to influence humanitarian response strategies.

The report further stated that while INGOs access indirect funding mainly through other international organisations and consortiums, NNGOs depend primarily on UN funding, particularly the Nigeria Humanitarian Fund.

The report showed that direct donor funding to NNGOs remains limited in both volume and duration, reinforcing dependence on sub-granting from INGOs and constraining localisation efforts.

It stated that the imbalance cuts across capacities, coordination, funding, partnerships, participation, advocacy and policy influence, pointing to a consistent pattern within the sector.

The report read, “NNGOs are responsible for a considerable proportion of the implementation of humanitarian-led and development action processes, yet they possess limited autonomy, recognition and leadership in decision-making spaces.

“This indicates both structural constraints and unequal power dynamics between national and international actors,” the report said.

Although the report acknowledged a gradual improvement in the quality of funding available to NNGOs, it noted that the exclusion of overhead costs in many partnership arrangements hampers institutional strengthening.

It added that indirect funding, lack of overheads and high staff turnover driven by wage disparities with international organisations continue to undermine long-term capacity development.

The CACO Chairman, Mr Peter Egwudah, said the initiative was designed to assess the extent, quality and impact of localisation efforts in Nigeria while amplifying the perspectives and leadership of local actors.

He explained that extensive consultations involving surveys, focus group discussions and interviews were conducted with partners, including donors, UN agencies, INGOs, government institutions and civil society networks.

“As a network, we reaffirm our belief that localisation is not just a policy goal but a pathway to a more effective, accountable and sustainable humanitarian response,” Egwudah said.

He added that CACO had scheduled the official launch of the Localisation Barometer Survey Report for Tuesday, December 16, at the Adamawa State Government House Banquet Hall, Yola.

Data also showed that although both NNGOs and INGOs agree in principle on co-definition and ownership, inequalities persist in practice.

Over half of NNGOs reported monopolistic approaches in partnerships, compared to only 15 per cent of INGOs, with nearly a quarter of NNGO partnerships described as placing them at a disadvantage.

These disparities are most evident in financial management, where NNGOs are often restricted to managing their own budget lines and excluded from global budget design discussions, reducing their role to activity implementation.

The report identified equitable partnerships as critical to overcoming the challenges faced by local actors and achieving the commitments of the Grand Bargain.

It noted that partnership development was of equal strategic interest to both NNGOs and INGOs, but added that while NNGOs largely seek funding, INGOs are often motivated by access to communities.

Despite being recognised as essential responders, NNGOs were found to play a minimal role in shaping standards, systems and coordination structures, with limited visibility on national and international platforms.

It noted that the role of national actors remains largely operational rather than strategic.

Underscoring one of its key findings, the report concluded that NNGOs still lack a strong voice, with their participation largely confined to operations and limited influence over standards or coordination.

Strategic sectors, such as emergency telecommunications, remain dominated by INGOs, leaving communities underrepresented in humanitarian governance spaces.

The report, however, acknowledged the role of the Nigeria Humanitarian Fund in strengthening the technical and organisational capacities of NNGOs through dedicated funding channels.

While NNGOs are showing increased operational presence and willingness to build capacity, challenges such as high staff turnover, indirect funding and mistrust over governance systems persist.

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