DSS rejects foreign funding for proposed security trust fund, warning of national security risks

The Department of State Services (DSS) has warned lawmakers against allowing foreign organizations to contribute financially to the Security Trust Fund proposed for the agency, arguing that such an arrangement could harm intelligence operations, weaken institutional independence and expose sensitive national security activities to outside influence.

The position was made Thursday during a public hearing held by the House of Representatives’ National Security and Intelligence Committee, where lawmakers considered a series of bills aimed at strengthening the operational effectiveness of domestic intelligence agencies through increased funding, training and research.

Representing the DSS at the session, Emmanuel Duabry expressed his support for the proposed law establishing the DSS Trust Fund but urged the National Assembly to make significant amendments, particularly regarding provisions allowing grants and donations from international bodies.

Raising concerns about the impact of foreign-backed funding on intelligence activities, Duabry told lawmakers:

“Article 3(d), which permits grants, donations and endowments from international organizations, should be abolished.

“Allowing foreign funding for security-related Trust Funds raises serious concerns regarding sovereignty, operational confidentiality, and institutional independence. International funding arrangements may impose reporting and disclosure obligations that could compromise sensitive security operations, including intelligence methods, procurement processes, and deployment strategies.

“There is also a risk that foreign funding could exert external influence on domestic security priorities, which may not always align with Nigeria’s specific security realities, including insurgency, banditry and kidnapping.”

The agency proposed that contributions to the fund should be limited to local donors and organizations, and emphasized that national security funding should remain free from external interference.

Despite reservations regarding aspects of the bill, DSS described the Trust Fund initiative as an important step to ensure reliable and timely funding for intelligence operations.

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According to the agency, the proposed funds will strengthen the country’s capacity to address terrorism and emerging security threats while reducing bureaucratic delays associated with traditional budget allocations.

It said: “The bill to establish a State Services Trust Fund proposes the creation of a dedicated DSS Security Trust Fund aimed at ensuring stable and flexible funding for intelligence gathering, counterterrorism efforts, and broader national security operations.

“These funds are designed to facilitate the acquisition of modern operational equipment, improve training, and enable rapid response to emerging security challenges, while minimizing delays often associated with conventional budget procedures and maintaining the confidentiality required for sensitive activities.

“This is further intended to ensure the rapid availability of funding during emergencies such as terrorism incidents, civil unrest and other crises.”

In addition to the issue of foreign donations, the DSS also called for adjustments to the proposed funding model, arguing that current law gives excessive discretion to the National Assembly in determining annual allocations.

The agency stated that adopting the statutory fixed contribution formula would provide greater financial certainty and improve long-range planning for intelligence operations.

The Service further recommended changes to the composition of the Trust Fund’s governing board. They opposed the inclusion of the Nigerian Governors Forum, stating that the body was not created by law, and instead proposed that the Nigerian Bar Association nominate a representative with expertise in the areas of national security and human rights.

DSS also recommends that the Board Secretary be appointed by the President and must be a current or retired DSS officer with a rank not lower than Assistant Director, with a minimum of 10 years post-call legal experience.

Additional recommendations include provisions authorizing board members to resign by written notice to the President and authorizing the President to remove members on the basis of misconduct, incompetence or inability to carry out their responsibilities.

Nevertheless, the Service urged lawmakers to move forward with the legislation.

“This bill represents a significant and commendable effort to strengthen the Service’s operational capacity through a sustainable funding mechanism. Therefore, it is in the best interests of national security that the bill is passed into law,” he added.

The intelligence agency also expressed its objection to another bill seeking to establish the Institute for Strategic Intelligence Management, and warned that the proposal overlapped with the mandate of the National Institute for Security Studies already established by law.

Duabry argued that the two agencies would serve essentially similar roles by providing strategic and specialized intelligence training to security personnel and government officials.

To avoid duplication, DSS advised lawmakers to redesign the proposed agency to focus solely on foreign intelligence and international intelligence cooperation, which is usually associated with the National Intelligence Service.

According to the Agency: “The design and function of the proposed Institute should be refocused to serve as a specialized training and capacity building center specifically oriented to external intelligence, foreign intelligence operations, and international intelligence cooperation.

“This will ensure a clear distinction from the National Institute for Security Studies, which already provides general strategic security training.”

The DSS stated that the restructuring would eliminate institutional overlap, clarify responsibilities and strengthen Nigeria’s foreign intelligence framework.

Defending the proposed law, Chairman of the House National Security and Intelligence Committee, Hon. Ahmed Satomi said the bill was designed to increase funding, training and technological capabilities in the country’s intelligence architecture.

“These bills are interrelated. The first addresses funding, the second addresses professional training and coordination, and the third addresses the capacity and technology of indigenous communities. Together, these bills aim to position our intelligence agencies to better protect the Nigerian people and Nigeria’s national interests,” he said.

Satomi described public hearings as an important stage in the legislative process, and stressed that input from stakeholders would help shape stronger legislation.

“Legislation is not an event, but a process. Public hearings are the most democratic part of the process.

“The bill before us aims to strengthen funding, build professional capacity, and increase Indigenous research capacity within our premier domestic security agency. No legislation created in isolation from the people they are intended to serve can stand the test of time. That is why you are here.”

He assured the participants that all valuable recommendations would be reflected in the final report of the committee.

Also speaking, DPR Speaker Tajudeen Abbas, represented by DPR Leader Julius Ihonvbere, described security as the foundation of national stability and development.

He noted that persistent threats such as terrorism, kidnapping, banditry, cybercrime and transnational organized crime require stronger investment in intelligence, innovation and institutional capacity, while urging stakeholders to continue contributing ideas that will enrich the legislative process.

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