When Anna lost her father to a preventable illness due to poor healthcare in her rural community, she vowed to make a difference. She gathered a group of volunteers and started offering free health education and minor medical assistance. However, when she approached donors for support, they asked one crucial question: “Is your NGO registered?”
Like Anna, many passionate individuals in Nigeria want to create lasting change, but without proper recognition, their efforts may not gain the trust and support needed to grow. Knowing and understanding the requirements for NGO registration in Nigeria is important in transforming a good cause into a legally recognised and structured organisation.
Registering an NGO provides a solid foundation for long-term impact, allowing organisations to access funding opportunities, gain credibility with stakeholders, and operate within the boundaries of the law.
This article provides a step-by-step guide on the requirements for NGO registration in Nigeria, breaking it down into simple and relatable steps.
See also: Steps to Register an NGO in Nigeria
Key Takeaways From Requirements for NGO Registration With CAC in Nigeria
- Registering an NGO as Incorporated Trustees grants it a distinct legal identity separate from its founders. This allows it to own property, enter contracts, and function independently within Nigeria’s legal system.
- A registered NGO can sue and be sued, enter legal agreements, and engage in activities that require official documentation. This legal standing provides stability and protection for the organisation.
- NGOs must have a board of trustees, who serve as decision-makers and legal representatives. A well-defined constitution is also required, detailing the organisation’s objectives, governance structure, and operational procedures.
- Many donors, government agencies, and international partners require NGOs to be legally registered before offering grants or support. Registration establishes credibility and increases access to funding opportunities.
Understanding the Legal Framework for NGO Registration in Nigeria
Every non-profit organisation in Nigeria must operate within a structured legal framework to ensure transparency, legitimacy, and compliance. The Corporate Affairs Commission (CAC) is the regulatory body responsible for overseeing NGO registration, ensuring that all nonprofit entities adhere to the laws outlined in the Companies and Allied Matters Act (CAMA) 2020.
Under Part F of CAMA 2020, NGOs are registered as Incorporated Trustees, granting them a legal identity separate from their founders. This status allows them to own property, enter contracts, and function as independent legal entities.
The law mandates that NGOs be governed by a board of trustees, individuals who will serve as the organisation’s legal representatives and decision-makers.
The registration process also demands strict governance and accountability. NGOs must draft a constitution that outlines their objectives, leadership structure, and operational procedures.
Additionally, a public notice of intent to register must be published in two national newspapers, allowing the public 28 days to raise any objections. This step reinforces transparency and ensures that only legitimate organisations are granted official recognition.
Once registered, NGOs are expected to comply with regulations such as filing annual returns with the CAC to maintain their active status. Those receiving foreign funding may also need to register with the Special Control Unit Against Money Laundering (SCUML) to ensure financial accountability.
The legal framework is not a bureaucratic hurdle, it is a protective shield that strengthens an NGO’s credibility, ensures proper governance, and secures its long-term sustainability. By following the CAC’s regulations, NGOs can confidently pursue their missions while maintaining public trust and legal backing.
See also: How to Register an NGO- Non-Governmental Organisation In Nigeria Successfully
Preliminary Preparations for NGO Registration in Nigeria
Before embarking on the formal registration process, setting a strong foundation for your NGO is essential. This involves careful planning, structuring, and ensuring that all necessary elements are in place to meet the Corporate Affairs Commission (CAC) requirements.
Below are some preliminary steps to take before registering an NGO in Nigeria
1. Defining the NGO’s Objectives and Mission
Every NGO is built on a purpose. Before initiating the registration process, clearly outline the core objectives and mission of the organisation.
The CAC mandates that an NGO must serve purposes that align with charitable, educational, religious, social, or humanitarian goals. A well-defined mission provides direction, attracts stakeholders, and ensures that the NGO’s work aligns with legal requirements.
2. Selecting Trustees and Governance Structure
The governance structure of an NGO is one of the most critical aspects of its registration. The Incorporated Trustees model under Part F of CAMA 2020 requires NGOs to have a board of trustees, who will act as the legal representatives of the organisation.
Trustees play a vital role in decision-making, financial oversight, and compliance with regulations.
Eligibility Criteria for Trustees:
- Must be at least 18 years old.
- Must be of sound mind and capable of making decisions in the NGO’s best interest.
- Must not be an undischarged bankrupt.
- Must not have any criminal convictions related to fraud or dishonesty within the past five years.
Selecting the right trustees is important, as they will shape the strategic direction of the NGO. It is advisable to appoint individuals with relevant experience in nonprofit management, finance, legal affairs, or social work. Trustees should also be committed to the NGO’s cause and able to contribute to its growth and sustainability.
See Also: How to transition from not having a business idea to having a functional registered business.
3. Choosing a Suitable Name for the NGO
The name of an NGO is more than just an identity, it reflects its vision and purpose. CAC guidelines require NGO names to be unique and must include the phrase “Incorporated Trustees of…” to signify its legal status.
To avoid rejection or duplication, conduct a name availability search on the CAC portal before proceeding.
4. Drafting the NGO’s Constitution
A well-structured constitution serves as the governing document of the NGO. It must outline the organisation’s mission, governance structure, decision-making process, and operational guidelines. The CAC requires the constitution to include:
- The name of the NGO.
- The objectives and scope of operations.
- Details of the board of trustees and their roles.
- Rules for meetings, decision-making, and amendments.
- Provisions for financial management and accountability.
The constitution is an important document that provides clarity, ensures compliance with legal requirements, and guides the NGO’s day-to-day operations.
See also: Steps to Register an NGO In Nigeria-A Comprehensive Guide
5. Preparing the Minutes of Meetings
Before an NGO is registered, the founding members must hold a meeting to appoint the board of trustees, approve the constitution and pass a resolution to apply for registration under CAC.
The minutes of this meeting must be documented and signed by the Chairman and Secretary of the organisation. These records serve as evidence that all founding members agree on the establishment and governance of the NGO.
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6. Gathering Essential Identification Documents
To verify the identity and legitimacy of the trustees, CAC requires the submission of a valid means of identification (National ID, International Passport, or Driver’s License) for each trustee, two passport-sized photographs for each trustee, and trustee declaration forms, which must be sworn before a Commissioner for Oaths or Notary Public.
See Also: Comprehensive guide on how to register your business with CAC
Requirements for CAC Registration of an NGO in Nigeria
Registering a Non-Governmental Organisation (NGO) with the Corporate Affairs Commission (CAC) is more than just a legal formality; it is a crucial step toward establishing credibility, ensuring transparency, and securing operational stability.
Without proper registration, an NGO may struggle to gain public trust, access funding, or legally protect its activities. The process requires careful preparation and adherence to specific guidelines to ensure compliance with Part F of the Companies and Allied Matters Act (CAMA) 2020.
1. Choosing a Name and Defining the NGO’s Purpose
Every NGO begins with an idea, but before it can take shape legally, it must have a name and a clear sense of purpose. The CAC requires NGOs to include the phrase “Incorporated Trustees of…” in their names, ensuring their legal identity as nonprofit entities.
Choosing a name is not just about branding, it must be unique and distinguishable from existing organisations. To confirm availability, applicants must conduct a name search on the CAC portal and submit at least two name options for approval.
Beyond the name, the NGO’s purpose must be well-defined. The CAC mandates that NGOs focus on charitable, educational, religious, or social development objectives.
A clear mission not only aligns the organisation with legal requirements but also provides direction for its activities and credibility with potential donors and stakeholders.
See also: How To Choose The Perfect Business Name For Your Business
2. Appointing Trustees and Structuring Governance
NGOs are not run by a single individual; they require a board of trustees to oversee their governance and decision-making. These trustees act as the legal representatives of the organisation, ensuring accountability and proper management.
The CAC requires a minimum of two trustees, but many NGOs appoint more to strengthen their governance structure. Trustees must be at least 18 years old, of sound mind, and free from any criminal convictions related to fraud or dishonesty.
Selecting trustees is a significant step because these individuals will shape the organisation’s future. It is advisable to choose people with relevant experience in nonprofit management, finance, or legal affairs.
See Also: Benefits of registering a business in Nigeria.
3. Drafting a Strong Constitution
A well-prepared constitution is the backbone of any NGO. It is not just a document for CAC compliance; it serves as the guiding framework for the organisation’s governance, operations, and accountability.
The constitution must include details such as:
- The official name of the NGO.
- Clearly defined objectives and mission.
- The roles and responsibilities of trustees.
- The structure for meetings, decision-making, and amendments.
- Financial management policies to ensure transparency and prevent misuse of funds.
A well-drafted constitution reassures stakeholders, partners, and donors that the NGO operates with integrity and structure.
4. Holding a Founding Meeting and Keeping Records
Before an NGO can be registered, its founding members must convene a formal meeting to make key decisions. During this meeting, trustees are officially appointed, and the constitution is adopted.
The meeting minutes must be carefully recorded, as the CAC requires a signed copy to verify that these foundational steps were followed correctly. The minutes should include resolutions passed, names of trustees, and decisions regarding governance structures.
5. Documentation and Identification Requirements
Since NGOs operate in the public interest, the CAC requires thorough documentation to verify the legitimacy of trustees and ensure transparency. Each trustee must submit a valid form of identification, such as a National ID card, International Passport, or Driver’s License.
Additionally, two passport-sized photographs are required, along with a Trustee Declaration Form that must be sworn before a Commissioner for Oaths or Notary Public. These requirements safeguard against fraudulent applications and ensure that only credible individuals are entrusted with managing an NGO.
See Also: Factors to consider before choosing a legal structure in Nigeria.
6. Public Notice Requirement and Transparency
To further enhance transparency, NGOs must publish a notice of intent to register in two national newspapers. This announcement allows the public 28 days to raise any objections regarding the NGO’s formation. If no objections are received within the stipulated period, the registration process can proceed without hindrance.
This step is crucial in verifying that the NGO is being formed for legitimate purposes and not for fraudulent activities.
7. Finalising Registration and Maintaining Compliance
Once all documents are ready, the application is submitted via the CAC portal. This includes completing the CAC-IT 1 form and paying the prescribed registration fee. However, registration is not the final step, ongoing compliance is key to sustaining an NGO’s legal status.
Organisations must file annual returns with CAC to keep their registration active, maintain detailed financial records, and, where applicable, register with the Special Control Unit Against Money Laundering (SCUML) if they receive significant foreign or local funding.
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FAQs About Requirements for CAC Registration of an NGO in Nigeria
How long does it take to register an NGO with CAC?
The registration timeline varies, but typically, it takes between four to twelve weeks to complete the process, depending on factors such as name approval, document submission, and public notice requirements.
What is the cost of NGO registration in Nigeria?
The cost depends on the number of trustees and other administrative factors. Generally, registration fees range between ₦30,000 to ₦100,000, excluding costs for newspaper publications and professional services if required.
Can one person register an NGO alone?
No, an NGO must have at least two trustees as required by the Companies and Allied Matters Act (CAMA) 2020. Trustees play a crucial role in governance and decision-making.
Do NGOs pay taxes in Nigeria?
Registered NGOs are generally exempt from paying taxes, provided they operate as nonprofit entities. However, they must still comply with financial reporting requirements and apply for tax exemptions with the Federal Inland Revenue Service (FIRS).
Is newspaper publication compulsory for NGO registration?
Yes, CAC requires NGOs to publish a public notice of intent to register in two national newspapers. This step allows the public 28 days to raise any objections before final approval is granted.
What happens if an NGO fails to file annual returns?
Failure to file annual returns with CAC can lead to penalties or deregistration of the NGO. Regular filings help maintain the organisation’s legal status and ensure compliance.
Can an NGO receive foreign funding without additional registration?
NGOs that receive foreign donations or high-value local funding may need to register with the Special Control Unit Against Money Laundering (SCUML) to ensure compliance with financial regulations.
Conclusion
Registering an NGO with the Corporate Affairs Commission (CAC) is more than just a regulatory requirement, it is a gateway to credibility, sustainability, and operational effectiveness. A legally recognised NGO enjoys benefits such as access to funding, legal protection, and public trust.
For NGOs aspiring to make a meaningful impact in Nigeria, navigating the CAC registration process is a necessary step. It ensures that the organisation is not only structured and well-governed but also prepared to meet legal and financial obligations. NGOs that adhere to these regulations can confidently pursue their missions, knowing they are legally recognised and equipped for sustainable growth.
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