THE Department of State Services (DSS) has rejected proposals to allow foreign organisations to fund security operations in Nigeria through a proposed Trust Fund, warning that such arrangements could undermine national sovereignty, compromise operational confidentiality and expose the country’s intelligence architecture to external influence.
News Point Nigeria reports that the secret agency made its position known on Thursday during a public hearing organised by the House of Representatives Committee on National Security and Intelligence on a Bill seeking to establish the Department of State Services (DSS) Trust Fund.
While expressing support for the overall objective of the proposed legislation, the DSS urged lawmakers to amend key provisions relating to funding, governance and administration before its passage.
The hearing considered three separate bills, including the Department of State Services Trust Fund Bill (HB.2178), the Strategic Intelligence Management Institute Bill (HB.2589), and the DSS Research and Development Institute Bill (HB.2716).
In its presentation, the DSS described the proposed Trust Fund as a significant initiative designed to provide dedicated and sustainable financing for intelligence gathering, counter-terrorism efforts and broader national security operations.
According to the agency, the fund would facilitate the acquisition of modern operational equipment, enhance personnel training, improve responses to emerging security threats and reduce delays associated with conventional budgetary procedures.
However, the Service strongly opposed provisions in the Bill that would permit grants, donations and endowments from international organisations.
The DSS argued that foreign funding of security-related activities raises serious concerns regarding sovereignty, institutional independence and operational secrecy.
According to the agency, international funding arrangements often come with reporting and disclosure obligations that could expose sensitive intelligence methods, procurement activities and deployment strategies.
The Service further warned that foreign donors could influence domestic security priorities in ways that may not align with Nigeria’s unique security realities, including insurgency, banditry and kidnapping.
Consequently, the DSS recommended that the relevant provision be amended to allow grants, donations and endowments only from local organisations and entities.
DSS Raises Concerns Over Funding Framework
Beyond the issue of foreign funding, the DSS also expressed concerns about the financing framework proposed in the Bill.
The agency noted that the legislation grants the National Assembly discretion to determine annual contributions to the Trust Fund, a provision it said could create uncertainty and unpredictability in funding.
The Service further argued that the Bill failed to clearly define the contributions expected from both the Federal Government and state governments.
To address the concern, the DSS proposed the adoption of a fixed percentage or clearly defined funding formula that would guarantee predictability while still allowing future legislative reviews where necessary.
DSS Seeks Governance and Administrative Reforms
The Service also called for changes to the title of the Bill, recommending the removal of the word “Security” from the proposed name of the Trust Fund.
According to the agency, the title should simply read: “A Bill for an Act to Establish the Department of State Services Trust Fund, to Provide for its Management, Funding and Utilisation to Enhance National Security Operations; and for Related Matters.”
The DSS further urged lawmakers to review the composition of the governing board of the proposed fund.
The agency observed that the proposed board lacked mandatory legal representation and questioned the inclusion of the Nigerian Governors’ Forum, describing it as a voluntary association without statutory backing.
To strengthen governance and oversight, the DSS recommended that the Nigerian Bar Association nominate a representative with expertise in national security and human rights.
The agency also proposed that the Board Secretary should be appointed by the President and must be a serving or retired DSS officer not below the rank of Assistant Director, as well as a legal practitioner with at least 10 years post-call experience.
In addition, the Service noted that the Bill failed to provide procedures for the resignation or removal of board members, including the chairman.
It therefore proposed new provisions allowing members to resign by giving one month’s written notice to the President, while empowering the President to remove the chairman or any board member for misconduct, gross incompetence, inability to perform official duties or any other sufficient cause.
DSS Supports Passage of Bill Despite Reservations
Despite its proposed amendments, the DSS urged the National Assembly to pass the Bill, describing it as a vital mechanism for strengthening the operational capacity of the Service through sustainable funding.
The agency said the establishment of the Trust Fund would significantly enhance its ability to address contemporary security challenges and improve operational effectiveness.
DSS Warns Against Duplication of Intelligence Training Institutions
The Service also used the hearing to raise concerns over the proposed Strategic Intelligence Management Institute Bill, warning that it could duplicate the functions of the National Institute for Security Studies established under the National Institute for Security Studies (Establishment) Act, 2019.
According to the DSS, both institutions would perform largely similar roles in providing strategic and specialised training for intelligence personnel, security officers and public officials.
To prevent overlap and institutional duplication, the agency recommended that the proposed institute be redesigned to focus exclusively on external intelligence, foreign intelligence operations and international intelligence cooperation in line with the mandate of the National Intelligence Agency (NIA).
Speaking at the hearing, Chairman of the House Committee on National Security and Intelligence, Hon. Ahmed Satomi, said the three bills were designed to strengthen the operational capacity of the DSS through sustainable funding, professional intelligence training and indigenous research and technological development.
Satomi described the proposed legislations as complementary measures aimed at addressing critical gaps in Nigeria’s intelligence architecture.
Also speaking, Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, who was represented by the House Leader, Prof. Julius Ihonvbere, stressed that national security remains the foundation for Nigeria’s survival and development.
He noted that challenges such as terrorism, banditry, kidnapping, cybercrime and transnational organised crime require sustained investment in intelligence capacity, innovation and institutional strengthening.
According to him, strengthening intelligence institutions through appropriate legislation and sustainable funding mechanisms is essential to effectively tackle the country’s evolving security threats and safeguard national development.