The House of Representatives on Thursday refused to approve the Corps bill.
The bill seeks to turn the Corps into a government para-military agency.
The bill which was sponsored by member of the House from Benue, Emmanuel Orker-Jev, failed to pass second reading at the lower legislative chambers.
Recall that the bill which was earlier passed by the National Assembly was rejected by President Muhammadu Buhari, who refused to sign it into law.
Explaining why he rejected the bill, Buhari cited security concerns and financial burden of funding the organization by the government.
His explanation was contained in a letter to the Speaker of the House of Representatives, Yakubu Dogara, in February.