Enhancing political party regulation to curb public sector corruption, By Umar Yakubu

Professor Joash Amupitan (SAN),
Chairman, Independent National Electoral Commission (INEC)
INEC Headquarters
Abuja, FCT, Nigeria

Dear Prof,

Strategic Agenda for Enhanced Political Party Regulation and Enforcement to Curb Public Sector Corruption

On behalf of the Center for Fiscal Transparency and Public Integrity (CeFTPI), we extend our warm congratulations on your assumption of office as the Chairman of the Independent National Electoral Commission (INEC).

The Center for Fiscal Transparency and Public Integrity is a non-partisan, non-governmental organisation committed to promoting good governance by strengthening systems and mechanisms that ensure transparency and accountability across public institutions at both the national and sub-national levels. Our work includes strategic partnerships with government, civil society, and international actors, to drive initiatives in fiscal transparency, anti-corruption, illicit financial flows, and public sector integrity.

As part of our efforts to promote the integrity mechanisms in the electoral system, in 2022, we launched an advocacy project called Electoral Financing. This project aims to enhance transparency and accountability in election financing by candidates and political parties. We launched this project because the long-standing failure to enforce political party financing regulations rigorously has created a corrosive loop that directly impacts governance and sustainable development in Nigeria. The opaque flow of money in politics creates pressure across the system in several key areas:

1. Pressure on Public Service (Federal and State): Illicit political funding operates as an investment, requiring a “return on investment” (ROI) for financiers. This compels elected officials to bypass meritocracy and appoint unqualified but loyal personnel to key revenue-generating Ministries, Departments, and Agencies (MDAs) at both the federal and state levels. This practice weakens institutional capacity, facilitates contract fraud, and institutionalises petty and grand corruption.
2. Exorbitant Cost of Elections: The lack of strict enforcement of campaign donation limits forces politicians to rely on ‘money bags.’ This inflates the financial cost of seeking office, thereby driving massive and often illicit spending on party primaries, media saturation, and vote-buying. This high barrier ensures that ethical candidates are sidelined, while only those willing to compromise are able to compete.
3. Compromising the Integrity of Politicians: Candidates who emerge successful often carry crippling financial burdens, from campaign debts to obligations to financial patrons. This compromises their independence, forcing them to prioritise servicing these external interests over their constitutional duty to the electorate, leading directly to the abuse of public trust and office.
4. The Negation of National Development: When political decisions are determined by financial patrons, rather than national priorities, public budgets and projects become skewed towards rent-seeking and profit extraction (e.g., inflated contract values, unnecessary projects). This diverts critical public resources from essential services such as health, education, and infrastructure, thereby fundamentally undermining Nigeria’s development objectives.

The solution is to use INEC’s constitutional power to cut this corrupt link. We, therefore, present this strategic agenda, categorised into actionable pillars:

I. Digital Transparency and Real-Time Disclosure: To eliminate opacity in party financing by enforcing real-time, digital, and public disclosure of all financial transactions.

1. Mandatory Digital Reporting: Mandate and enforce the use of the INEC portal for the real-time submission of financial returns (donations and expenditures) for any transaction exceeding ₦10 million.
2. Proactive Data Publication: Institute a policy to publish all submitted audited financial statements, including the detailed schedules of donations (names, addresses, and amounts, for contributions exceeding the statutory limit), within 30 days of receipt.
3. Regulation of Digital Campaign Finance: Develop specific, enforceable guidelines to monitor the financial deployment of digital technologies in campaigns (e.g., funding for online advertising and digital transfers) to close emerging regulatory gaps.

II. Bolstering Regulatory Enforcement and Auditing Capacity: To empower the Commission with the technical and legal capacity to investigate breaches and impose deterrent sanctions.

1. Establish a Special Electoral Finance Monitoring Unit (SEFMU): Create a dedicated, multi-disciplinary unit within the Commission staffed by forensic auditors, compliance officers, and legal experts, solely tasked with the active investigation and prosecution of political finance breaches.
2. Strengthen Inter-Agency Cooperation: Formalise and operationalise Memoranda of Understanding (MoUs) with the Economic and Financial Crimes Commission (EFCC); Independent Corrupt Practices and Other Related Offences Commission (ICPC); Code of Conduct Bureau (CCB); Nigerian Financial Intelligence Unit (NFIU); Central Bank of Nigeria (CBN); and Federal Inland Revenue Service (FIRS). This partnership is vital for tracing the ultimate beneficial ownership of large political donations and verifying declared income against tax and financial records.
3. Vigorous Enforcement of Foreign Contribution Ban: Actively enforce Section 225(3)(a) of the Constitution regarding the prohibition of foreign contributions, ensuring immediate forfeiture and sanction of any political party found in violation.

III. Legislative and Policy Advocacy: To close legal and implementation gaps that currently serve as conduits for political corruption.

1. Harmonisation of Donation Limits and Entities: Advocate for an immediate legislative review to clarify or remove the ambiguity created by Section 88(8) of the Electoral Act, 2022, regarding contributions from entities other than political parties, ensuring alignment with the Constitution’s clear prohibition to prevent corporate state capture.
2. Review of Sanctions and Penalties: Advocate for a substantial increase in the financial penalties and non-monetary sanctions for non-compliance, ensuring penalties serve as a genuine deterrent.
3. Regulation of Third-Party/Non-Party Spending: Introduce regulatory frameworks and spending limits on non-party organisations (like advocacy or pressure groups) that engage in electioneering to prevent the use of such entities as conduits for unlimited, undeclared funds.

We believe that the successful implementation of this agenda will significantly enhance the transparency of the electoral ecosystem, directly reduce the incentives for political corruption, and strengthen public confidence in the integrity of government.

We thank you for your attention to these recommendations as you assume this critical national mandate

Please accept the assurances of our high regard.

Umar Yakubu, PhD
Executive Director

cc:

The Executive Chairman
Economic and Financial Crimes Commission
Plot 301/302, Institution and Research Cadastral District Jabi
Abuja

The Executive Chairman
Independent Corrupt Practices Commission
Plot 802, Constitution Avenue, Zone A9
PMB 535, Garki
Abuja

The Executive Chairman
Code of Conduct Bureau
5th Floor, Federal Secretariat Complex Annex III
Shehu Shagari Way, Maitama
Abuja.

The Chief Executive Officer
Nigeria Financial Intelligence Unit
12 Ibrahim Taiwo Road, Aso Villa
Abuja

The Governor
Central Bank of Nigeria
Plot 33, Abubakar Tafawa Balewa Way
Central Business District
Abuja

The Executive Chairman<
Nigeria Revenue Service
Revenue House, 20 Sokode Crescent
Wuse Zone 5
Abuja.