Inec and
challenges of monitoring political party campaign financing in Nigeria
1.1
BACKGROUND OF STUDY
Democracy
is a system in which the government is controlled by the people, and in which
people are considered equals in the exercise of that control. However, unequal
access to political finance contributes to an uneven political playing field.
Campaign financing has been a major concern in Nigeria.
Significant and unregulated campaign financing often create an uneven playing
field in election contest. Large sums of money give certain parties and/or
candidates undue advantage over others. Very often the candidates with the most
money always win the election or party nomination process. Wide discrepancies
in levels of funding between parties and candidates constrains opportunities
for political competition and tend to disenfranchise challengers.
Most often, the uneven playing field results from the fact
that the ruling party or the incumbent candidate control political apparatus
and uses it to its own advantage and to the disadvantages of challengers. The
financial requirements
For entry to electoral competition appear to be getting
higher and higher, resulting in political exclusion of those who cannot afford
the cost. Another concern has been that elected officials are becoming more
accountable to those who finance their campaigns than to their constituents.
Large corporate or single donor funding for parties and candidates dominates
political decisions and political corruption is a national problem, posing a
threat to the Nigerian economic growth, democracy, and the stability of the
country. Nearly all major financial and corruption scandals in recent times
have been linked to campaign and political financing.
The
rapid growth of campaign expenditure in many countries has exacerbated this
problem. The huge amounts of money involved in some election campaigns makes it
impossible for those without access to large private funds to compete on the
same level as those who are well funded.
There
is no doubt that political parties need access to funds in order to play their
part in the political process. At the same time, the role of money in politics
is arguably the biggest threat to democracy worldwide today. This threat is
clear across all continents—from huge corporate campaign donations in the
United States and drug money seeping into politics in Latin America, to
corruption scandals throughout Africa and Europe. Evidence shows that large
portions of the electorate around the world are left with the perception that
their politicians are more concerned about money than about representing
citizens’ interests.
In Nigeria today, sponsorship of a political party or
candidate is effectively a business investment, which the investor must recoup
the moment his candidate gets into public office. The very peculiar nature of
Nigeria’s socioeconomic environment characterized by hunger and literacy make
the electors and indeed government agencies susceptible to manipulation by
corrupt politicians who take advantage of inadequate electoral laws which
creates a leeway to unlimited access to political finance sufficient to destroy
the electoral process.
How political parties finance their campaigns is critical in
any democratic election. Researchers at the University of Ibadan, Nigeria and
the Centre for the Study of African Economies (CSAE), University of Oxford,
U.K. investigated how political parties in Nigeria finance their campaigns. The
most important question was to what extent campaign finance determines
electoral victory. The key results are:
Candidates invest large amounts of their private savings to
contend in the elections. This means that only individuals willing to invest
large amounts of money become candidates. Money distorts the candidate
selection process within parties and largely influences who wins the elections.
Electoral laws governing how parties should secure and spend their funds are
ineffective as there is a lack of knowledge about them. As a result such laws
have limited enforceability Okunade et al (2009).
1.2 statement of problem
Nigeria’s
political history since independence from Britain in 1960 has been a cycle of
authoritarian military regimes with episodic interregna of civilian governments.
Reinter politics in Nigeria has been characterized over the years by the
dominance of ‘electoral machines’ controlled by political entrepreneurs comprising
largely of wealthy former military officers and their civilian business Cronies.
The
major political parties in Nigerian politics today are little more than grand
agglomerations of the respective electoral ‘machines’ of the leading political
financiers. Many Nigerian politicians are ‘sponsored’ by local and regional
power brokers cum political entrepreneurs who finance their campaigns for
public office. The ‘sponsorship’ is effectively a business transaction in which
the patron recovers the ‘investment’ in the form of public works and procurement
contracts, prebendal appointments of cronies to public offices and other forms
of prebendal activity by the ‘client’ politician on assuming public office. In
some cases where the patron and client failed to define with sufficient
precision, the dimensions of the return on investment or the client balks at
delivering per the agreed terms, the fall out has led to mass violence and
political destabilization.
Political party finance has been identified as a source of
corruption in several countries. Political finance laws and regulation, through
which political parties and candidates for political office declare their
funding sources, are among the main instruments. Recent history has witnessed
the pooling together of resources all over the world into a network of global
awareness against unregulated use of money in politics. This Research is part of
the debate and will attempt to concisely examine different types of political
party financing in Nigeria, highlight the role of INEC and inadequacies that
are inherent and proffer suggestions on the way forward.
1.3
Objectives of the study
The main objective of this study is to examine the role of
Inec and challenges of monitoring political party campaign financing in Nigeria
.The study also has the following specific objectives:
1. To examine the sources of funds for political financing.
2. Highlight the role of INEC in monitoring political campaign
financing.
3. Examine political laws and finance regulations available to
political parties in Nigeria.
4. Highlight the challenges faced by INEC and other regulatory
bodies in monitoring political campaign financing
1.4 Research Questions
The following questions will be addressed in the course of
this study:
1. Has INEC undertaken an examination and audit of the accounts of
the political parties?
2. Do all
political parties have records of all contributions to their campaign funds?
3.
What
steps have been taken to sanction corporate bodies that contributed to the
campaign funds of political parties in total disregard of the provisions of
section 38 (2) of the company and Allied matters Act (1990), which prohibits
donations or gifts of any of its property or funds to a political party or
association.
4.
How
has political financing impacted on political parties choice of candidates for
elections?
1.5 Research Hypothesis
The following hypotheses has been developed and would be
tested in the
Course of this study:
Ho: Monitoring of political party campaign financing in Nigeria does not have any significant challenge.
Hi: Monitoring
political party campaign financing in Nigeria has very significant challenges.
1.6 Significance
of the Study
This study is necessitated by the urge and
the need for the research, reader and organizations in general to understand
the role of Inec and challenges of monitoring political party campaign
financing in Nigeria.
The following are the significance of study
to the researcher:
1.
To serve as a reference materials for students who will wish to
conduct similar studies on this topic.
2.
To serve as guide to corporate individuals, organization in
furtherance to their research on the subject matter.
1.7 Scope of the Study
The study is restricted
to the role of Inec and challenges of monitoring political party campaign
financing strictly in Nigeria.
1.8
Definition of Terms
1.
Campaign finance
This
refers to all funds raised in order to promote candidates, political
parties, or policies in elections, referendums, initiatives,
party activities, and party organizations. The funds could also detract from
the opponents of the above.
2.
POLITICAL PARTY ;
This is an organization of people which seeks to achieve goals common
to its members through the acquisition and exercise of political power.
3. ELECTION ;
An election
is a formal decision-making process by which a population
chooses an individual to hold public
office.
4. POLITICAL CAMPAIGN ;
This
is an organized effort which seeks to influence the decision making process
within a specific group. In democracies, political campaigns often refer to electoral
campaigns, wherein representatives are chosen or referendums
are decided.
Inec and
challenges of monitoring political party campaign financing in Nigeria
1.1
BACKGROUND OF STUDY
Democracy
is a system in which the government is controlled by the people, and in which
people are considered equals in the exercise of that control. However, unequal
access to political finance contributes to an uneven political playing field.
Campaign financing has been a major concern in Nigeria.
Significant and unregulated campaign financing often create an uneven playing
field in election contest. Large sums of money give certain parties and/or
candidates undue advantage over others. Very often the candidates with the most
money always win the election or party nomination process. Wide discrepancies
in levels of funding between parties and candidates constrains opportunities
for political competition and tend to disenfranchise challengers.
Most often, the uneven playing field results from the fact
that the ruling party or the incumbent candidate control political apparatus
and uses it to its own advantage and to the disadvantages of challengers. The
financial requirements
For entry to electoral competition appear to be getting
higher and higher, resulting in political exclusion of those who cannot afford
the cost. Another concern has been that elected officials are becoming more
accountable to those who finance their campaigns than to their constituents.
Large corporate or single donor funding for parties and candidates dominates
political decisions and political corruption is a national problem, posing a
threat to the Nigerian economic growth, democracy, and the stability of the
country. Nearly all major financial and corruption scandals in recent times
have been linked to campaign and political financing.
The
rapid growth of campaign expenditure in many countries has exacerbated this
problem. The huge amounts of money involved in some election campaigns makes it
impossible for those without access to large private funds to compete on the
same level as those who are well funded.
There
is no doubt that political parties need access to funds in order to play their
part in the political process. At the same time, the role of money in politics
is arguably the biggest threat to democracy worldwide today. This threat is
clear across all continents—from huge corporate campaign donations in the
United States and drug money seeping into politics in Latin America, to
corruption scandals throughout Africa and Europe. Evidence shows that large
portions of the electorate around the world are left with the perception that
their politicians are more concerned about money than about representing
citizens’ interests.
In Nigeria today, sponsorship of a political party or
candidate is effectively a business investment, which the investor must recoup
the moment his candidate gets into public office. The very peculiar nature of
Nigeria’s socioeconomic environment characterized by hunger and literacy make
the electors and indeed government agencies susceptible to manipulation by
corrupt politicians who take advantage of inadequate electoral laws which
creates a leeway to unlimited access to political finance sufficient to destroy
the electoral process.
How political parties finance their campaigns is critical in
any democratic election. Researchers at the University of Ibadan, Nigeria and
the Centre for the Study of African Economies (CSAE), University of Oxford,
U.K. investigated how political parties in Nigeria finance their campaigns. The
most important question was to what extent campaign finance determines
electoral victory. The key results are:
Candidates invest large amounts of their private savings to
contend in the elections. This means that only individuals willing to invest
large amounts of money become candidates. Money distorts the candidate
selection process within parties and largely influences who wins the elections.
Electoral laws governing how parties should secure and spend their funds are
ineffective as there is a lack of knowledge about them. As a result such laws
have limited enforceability Okunade et al (2009).
1.2 statement of problem
Nigeria’s
political history since independence from Britain in 1960 has been a cycle of
authoritarian military regimes with episodic interregna of civilian governments.
Reinter politics in Nigeria has been characterized over the years by the
dominance of ‘electoral machines’ controlled by political entrepreneurs comprising
largely of wealthy former military officers and their civilian business Cronies.
The
major political parties in Nigerian politics today are little more than grand
agglomerations of the respective electoral ‘machines’ of the leading political
financiers. Many Nigerian politicians are ‘sponsored’ by local and regional
power brokers cum political entrepreneurs who finance their campaigns for
public office. The ‘sponsorship’ is effectively a business transaction in which
the patron recovers the ‘investment’ in the form of public works and procurement
contracts, prebendal appointments of cronies to public offices and other forms
of prebendal activity by the ‘client’ politician on assuming public office. In
some cases where the patron and client failed to define with sufficient
precision, the dimensions of the return on investment or the client balks at
delivering per the agreed terms, the fall out has led to mass violence and
political destabilization.
Political party finance has been identified as a source of
corruption in several countries. Political finance laws and regulation, through
which political parties and candidates for political office declare their
funding sources, are among the main instruments. Recent history has witnessed
the pooling together of resources all over the world into a network of global
awareness against unregulated use of money in politics. This Research is part of
the debate and will attempt to concisely examine different types of political
party financing in Nigeria, highlight the role of INEC and inadequacies that
are inherent and proffer suggestions on the way forward.
1.3
Objectives of the study
The main objective of this study is to examine the role of
Inec and challenges of monitoring political party campaign financing in Nigeria
.The study also has the following specific objectives:
1. To examine the sources of funds for political financing.
2. Highlight the role of INEC in monitoring political campaign
financing.
3. Examine political laws and finance regulations available to
political parties in Nigeria.
4. Highlight the challenges faced by INEC and other regulatory
bodies in monitoring political campaign financing
1.4 Research Questions
The following questions will be addressed in the course of
this study:
1. Has INEC undertaken an examination and audit of the accounts of
the political parties?
2. Do all
political parties have records of all contributions to their campaign funds?
3.
What
steps have been taken to sanction corporate bodies that contributed to the
campaign funds of political parties in total disregard of the provisions of
section 38 (2) of the company and Allied matters Act (1990), which prohibits
donations or gifts of any of its property or funds to a political party or
association.
4.
How
has political financing impacted on political parties choice of candidates for
elections?
1.5 Research Hypothesis