Financial Management Practices and Sustainability of Non-Governmental Organizations in Nigeria: Bridging Governance, Funding Diversification, and Institutional Capacity Gaps

Abstract

The sustainability of non-governmental organizations (NGOs) in Nigeria remains a critical concern despite their significant contributions to socio-economic development, humanitarian interventions, and governance advocacy. This study examines the intersection of financial management practices and sustainability outcomes within Nigeria’s NGO sector, identifying key structural, institutional, and governance-related gaps that undermine long-term viability. Drawing on recent empirical and theoretical literature (2022–2025), the paper adopts a conceptual-analytical approach to explore how funding dependency, weak financial controls, governance inefficiencies, and limited capacity development affect NGO sustainability. The study further develops an integrative framework linking financial management systems, governance mechanisms, and sustainability performance. Findings indicate that while financial management practices are widely recognized as central to organizational survival, Nigerian NGOs continue to face systemic challenges such as over-reliance on donor funding, poor financial transparency, weak accountability structures, and inadequate strategic financial planning. The paper concludes that sustainable NGO operations require a paradigm shift toward diversified funding models, strengthened governance frameworks, and digital financial management systems. Policy recommendations are provided for practitioners, donors, and regulators to enhance financial resilience and long-term impact.