Controversial Not-for-Profit Organisation code explained

Earlier this month, President Mohammed Buhari took a significant step by dismissing the Executive Secretary of the Financial Reporting Council of Nigeria, Jim or Basi, and reorganizing its board. This decision was precipitated by the implementation of a controversial corporate code that had a profound impact on not-for-profit organizations, particularly religious bodies. To shed more light on this issue, Tom Pack spoke with Tommy Vincent, the managing partner of Ivory Solicitors, for insights into the contentious policy and its implications. The code, aimed at non-profit organizations, sought to address the lack of accountability and transparency in their operations. Over the years, there had been calls for increased oversight to ensure that these entities were not exploiting their tax-exempt status and were effectively delivering on their mandates. While the focus on religious organizations sparked the most debate, the code was designed to apply broadly to not-for-profit entities, including NGOs and charities. Vincent emphasized the importance of regulation in this sector, citing examples from other countries that have established regulatory frameworks to govern non-profit organizations. He underscored that the absence of such oversight in Nigeria had created a gap that needed to be addressed, and the code was a step in that direction. One of the key points of contention was whether the financial reporting council truly understood the unique operations of religious organizations. While the code outlined governance structures like boards of trustees and executive management, some questioned if these provisions were practical for religious bodies whose mandate was primarily spiritual. Vincent pointed out that existing legislation already catered to non-profits and incorporated trustees, but emphasized that once an organization became registered, it assumed a public status that warranted regulatory scrutiny. While acknowledging that certain religious bodies may struggle to align with the regulatory requirements, he stressed the necessity of providing guidance and support to facilitate compliance. The interview also delved into the challenges of implementing the code, particularly in the context of deeply entrenched beliefs and practices within religious organizations. Instances where religious groups resisted medical interventions in favor of divine healing underscored the complex task of enforcing regulations without infringing on religious freedom. Vincent highlighted the importance of patience and education in navigating these sensitivities, acknowledging that change within religious organizations would require time and respectful engagement. The conversation concluded with a reflection on the need for balance between regulation and religious autonomy, recognizing that while oversight was essential for accountability, it should be approached with sensitivity and understanding of the diverse contexts in which non-profit organizations operate. As Nigeria grapples with the implications of this controversial code, the debate surrounding the governance of not-for-profit entities continues to evolve, prompting discussions on the role of regulation in fostering transparency and accountability.