Special Reports

DSS Warns Against Foreign Funding For Proposed Security Trust Fund

ABUJA – The Department of State Ser­vices (DSS) has cautioned against allowing foreign or­ganisations to contribute to a proposed security trust fund for the agency, warning that such arrangements could expose sensitive intelligence operations to external influence and under­mine Nigeria’s national security interests.

The position was presented by Emmanuel Daubry on behalf of the Service during a public hearing organised by the House of Representatives Committee on National Security and Intel­ligence on Thursday in Abuja.

The hearing considered three bills, including the Bill for an Act to Establish the Department of State Services Trust Fund (HB.2178), the Bill for an Act to Es­tablish the Strategic Intelligence Management Institute (HB.2589), and the Bill for an Act to Estab­lish the DSS Research and Devel­opment Institute (HB.2716).

While expressing support for the proposed Trust Fund, the DSS urged lawmakers to amend several provisions of the legislation, par­ticularly those relating to funding sources, governance structures and funding mechanisms.

Presenting the Service’s memorandum, Daubry said the proposed Fund would provide a stable and dedicated source of financing for intelligence gather­ing, counterterrorism operations and other critical national securi­ty activities, while reducing de­lays associated with conventional budgetary processes.

According to the DSS, the Fund is intended to strengthen operational effectiveness by guar­anteeing access to resources for intelligence operations, acquisi­tion of specialised equipment, personnel training and rapid responses to emerging security threats.

“The Bill for an Act to estab­lish the Department of State Services Trust Fund proposes the creation of a dedicated DSS Secu­rity Trust Fund aimed at ensur­ing stable and flexible financing for intelligence gathering, coun­terterrorism efforts, and broader national security operations. The Fund is designed to facilitate the acquisition of modern operation­al equipment, enhance training, and enable swift responses to emerging security challenges, while also minimizing delays often associated with conven­tional budgetary procedures and safeguarding the confidentiality required for sensitive activities.

“It is further intended to guar­antee the availability of prompt funding during emergencies such as terrorism incidents, civ­il unrest, and other crises,” the Service stated.

Despite supporting the overall objective of the Bill, the DSS objected to provisions per­mitting grants, donations and endowments from internation­al organisations, arguing that security-related funding should remain insulated from external influence.

The Service warned that for­eign financial support could cre­ate obligations capable of com­promising operational secrecy and affecting the independence of domestic security institutions.

“Furthermore, Section 3(d), which permits grants, donations, and endowments from interna­tional organizations, should be expunged.

“Allowing foreign funding for a security-related Trust Fund raises serious concerns relating to sovereignty, operational con­fidentiality, and institutional in­dependence. International fund­ing arrangements may impose reporting and disclosure obliga­tions capable of compromising sensitive security operations, including intelligence methods, procurement processes, and de­ployment strategies.

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

The DSS consequently pro­posed that the provision be amended to restrict grants, do­nations and endowments to local organisations.

The Service also raised con­cerns about provisions empow­ering the National Assembly to determine annual contributions to the Fund without a clearly de­fined funding formula.

According to the DSS, a fixed percentage allocation or an ex­plicit framework would provide greater certainty and sustain­ability for long-term security planning while still allowing leg­islative oversight through future amendments.

Beyond funding concerns, the DSS called for adjustments to the proposed governance structure of the Fund. It argued that the board should include mandato­ry legal expertise and questioned the inclusion of the Nigerian Governors’ Forum, noting that it is a voluntary association rather than a statutory body established by law.

The Service recommended that the Nigerian Bar Associa­tion nominate a representative with expertise in national secu­rity and human rights. It further proposed that the Secretary of the Board should be appointed by the President and be a serving or retired DSS officer not below the rank of Assistant Director who is also a legal practitioner with at least ten years post-call experience.

The DSS also observed that the Bill does not provide pro­cedures for the resignation or removal of board members, including the chairman, and urged lawmakers to address the omission by inserting relevant provisions.

Notwithstanding its recom­mendations, the Service urged the National Assembly to pass the legislation, describing it as a critical step towards strengthen­ing the country’s intelligence and security capabilities.

“The Bill represents a signif­icant and commendable effort to strengthen the operational capacity of the Service through sustainable funding mecha­nisms. It is, therefore, in the best interest of national security that the Bill be passed into law,” the agency stated.

On the proposed Strategic In­telligence Management Institute, the DSS warned that the Bill sub­stantially overlaps with the func­tions of the National Institute for Security Studies, established under the National Institute for Security Studies (Establishment) Act, 2019.

According to the Service, both institutions would perform large­ly similar functions by providing strategic and specialised training for intelligence and security per­sonnel, as well as public officials, thereby creating the risk of du­plication.

To address the concern, the DSS recommended that the pro­posed institute be redesigned to focus specifically on external intelligence operations and in­ternational intelligence cooper­ation in line with the mandate of the National Intelligence Agency (NIA).

“The design and functions of the proposed Institute should be refocused to serve as a special­ised training and capacity-build­ing hub specifically oriented towards external intelligence, foreign intelligence operations, and international intelligence cooperation. This would ensure clear differentiation from the National Institute for Security Studies, which already provides generalised strategic security training,” the Service stated.

It added that such a restruc­turing would eliminate institu­tional duplication, strengthen clarity of mandates and support the National Intelligence Agency in carrying out its statutory re­sponsibility for Nigeria’s exter­nal security and international intelligence cooperation.

Chairman of the House Committee on National Securi­ty and Intelligence, Hon. Ahmed Satomi, said the three bills under consideration were intended to strengthen the operational ca­pacity of the DSS through sus­tainable funding, professional intelligence training and indige­nous research and technological development.

According to him, the pro­posed legislations are comple­mentary measures designed to improve funding, training and innovation within Nigeria’s in­telligence community.

“These bills are interlinked. One addresses funding, the second addresses professional training and coordination, and the third addresses indigenous capacity and technology. Togeth­er, they aim to position our intel­ligence agencies to better protect Nigerians and Nigeria’s national interest,” Satomi said.

Speaker of the House of Rep­resentatives, Abbas Tajudeen, represented by the House Leader, Prof. Julius Ihonvbere, described national security as the founda­tion upon which all other sectors of national development depend.

He stressed that contempo­rary threats such as terrorism, banditry, kidnapping, cyber­crime and transnational organ­ised crime require stronger intel­ligence institutions, predictable funding and sustained invest­ment in research, technology and capacity development.

The speaker urged stakehold­ers to make constructive contri­butions that would strengthen the legislative process and help reposition Nigeria’s security architecture to meet evolving threats.

The bills under consider­ation include 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).

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