When we think about what destroys NGOs, we often point to lack of funding, political interference, or donor fatigue. But the truth is, many nonprofits begin to fail long before the money runs out. The cause? Poor governance.
Poor governance doesn’t show up like unpaid salaries or closed offices. It’s quieter. It hides in board silence, decisions without documentation, no audits, no reporting, and trustees who have never read the constitution. But make no mistake—it kills.
I’ve once spoken with a passionate young woman who founded an NGO to reduce school dropout rates in Lagos slums. Her vision was clear. She had access to small grants, community trust, and a strong volunteer base. For a while, everything worked. But by 2021, the organisation had fizzled out. Not because the problem she wanted to solve disappeared. Not because the donors stopped believing in her. It was because her organisation was running on vibes, no structured board, no written policies, no meeting records, and no financial accountability.
Governance is what anchors an NGO. It includes how decisions are made, who makes them, how finances are managed, and how responsibilities are distributed. It’s not paperwork for the sake of it. It’s the operating system of the organisation.
Unfortunately, too many Nigerian NGOs treat governance as a checkbox. They register with the Corporate Affairs Commission (CAC), appoint three trustees just to get approval, and move on as if the board exists only on paper. Some have trustees who have never attended a single meeting, or worse, don’t even know they were listed.
Let’s be clear, poor governance has real consequences.
- Loss of credibility: No funder wants to give money to an NGO with no clear leadership structure or decision-making process. When you can’t explain how decisions are made or how funds are accounted for, trust erodes quickly.
- Regulatory risks: The Corporate Affairs Commission and regulatory bodies are no longer silent. Annual returns, updated trustee information, and functional constitutions are now being demanded, and rightly so. Failure to comply can result in deregistration or legal sanctions.
- Internal conflict: Without governance structures, roles blur. Staff and volunteers don’t know who’s in charge. Founders begin to act like monarchs. Eventually, internal disputes arise, and the organisation suffers.
- Missed opportunities: Many grant applications now ask for governance documents—board minutes, audit reports, conflict of interest policies. Without them, even qualified NGOs are left behind.
A 2021 survey by Spaces for Change found that nearly 40% of registered NGOs in Nigeria operate with inactive boards, and over 60% don’t conduct regular governance reviews. This is alarming. These are ticking time bombs. Funders are watching. Regulators are tightening. And credibility is fragile. Governance is not an optional extra. It is what keeps your NGO alive and credible.
So, here’s the question every nonprofit leader must ask: Are we governing, or are we winging it?
Do you hold regular board meetings? Are they documented? Do your trustees know their roles? Is your constitution being implemented or just archived?
Governance might not look urgent. It won’t trend on social media. But in the quiet spaces where funders decide, regulators check, and stakeholders evaluate—it’s everything.
If you want to build a sustainable organisation, don’t treat governance like a formality. Make it your foundation.
