Headline2023: Election Expenditure Limit And INEC’s Monitoring Role

2023: Election Expenditure Limit And INEC’s Monitoring Role

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One of the major challenges facing the Nigerian Electoral System is that it is highly monetised. As a result, many qualified Nigerians avoid joining in the struggle for political positions in the country. In fact, it has been said that to run for election in Nigeria one must be stupendously rich or have a rich godfather who will be ready to fund his ambition.

Although the electoral laws had tried over the years to correct this flaw in the electoral system by placing limitations on the amount of money that must be spent by individual candidates and the political parties in an election. It has been observed, however, that candidates and political parties do not adhere to the laid down rules on spending.

In the new Electoral Law, signed early in 2022 by President Muhammadu Buhari, the legislators did an upward review of the amount of election expenses for the various positions and that of political parties. This review drew some criticism from many Nigerians who believed that the legislators were not sensitive to the poverty pervading the land in their review.

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Many watchers of political developments in the country also believe that the amount is humongous and that it has taken elections beyond the reach of the average Nigerian.

Some political analysts believe that the previous ceilings in the Electoral Act 2010 have become grossly unrealistic, given the fact that it was done over 10 years ago and they support the review because of inflationary trends and the devaluation of the naira, which have seriously weakened the purchasing power of the nation’s currency.

They also cited the extension of the time-frame for electioneering from the initial 90 days to 150 days to the 2023 general election (Section 94(1) as one of the reasons why they are backing the upward review of the new ceiling on campaign expenditure.

Many Nigerians are indifferent because they know that no matter the limitation placed on campaign expenditure by the law, politicians and political parties will not comply with it, just like they have done in the past.

Another worrying aspect has been the violation of the Electoral Act by political parties in the area of audited accounts. The political parties have over the years refused to submit their audited accounts to INEC as directed by the Electoral Act.

Perhaps as a result of this, INEC, only a few days ago, warned political parties against flouting the rule on campaign expenses, saying it would sanction defaulters.

INEC made this known through its Federal Capital Territory (FCT) Resident Electoral Commissioner (REC), Alhaji Yahaya Bello.

Bello said the commission was making efforts to ensure the smooth conduct of the Presidential and National Assembly Elections in the FCT and all over the country.

“We have to observe campaign expenditure, this is very important and it is for political parties. We will host political parties in a conference to lecture them on political campaigns and spending during campaigns because there are lots of rules and guidelines guiding their campaign expenditures.

“I wish to inform you that there are laws and ethics governing our monitoring of political parties and these are guided by the Electoral Act, Police Act, INEC’s regulations and guidelines among others.

“There is a code of conduct for media regulations and political parties. They provide sanctions in the event of a breach,” he said.

Bello, therefore, advised all political parties, partners and those who will participate in the elections, including the press to take note of the provisions.

The new Electoral Act 2022 spells out campaign finance ceilings and penalties for the violators of the ceilings. The campaign finance is two-fold. There is the one for the candidates and another for the political parties.

Section 88 of the new Electoral Act places limitation of election expenses on candidates. Sub (2) says the maximum expenditure to be incurred by a candidate at a presidential election shall not exceed N5bn. This was formerly pegged at N1bn.

Sub-Section 3, placed the maximum amount of election expenses to be incurred by a candidate in respect of governorship election not to exceed N1bn. This used to be N200m;

The Electoral Act also states that the maximum amount of election expenses to be incurred by a candidate, in respect of Senatorial and House of Representatives seats shall not exceed N100m and N70m, respectively. Before it used to be N40m and N20m respectively.

Sub-Section 5 states that in the case of a State House of Assembly election, the maximum amount of election expenses to be incurred by a candidate shall not exceed N30m. It used to be N10m until the passing of the new electoral act.

Furthermore, subsection (6) says, “In the case of a chairmanship election to an Area Council, the maximum amount of election expenses to be incurred by a candidate shall not exceed N30m (Used to be N10m) sub. (7) says in the case of Councillorship election to an Area Council, the maximum amount of election expenses to be incurred by a candidate shall not exceed N5m. (Used to be N1m) and subsection (8) says no individual or other entity shall donate to a candidate more than N50m. (Formerly Ne1m).

The implication of the 2022 elctoral act is that candidates and political parties are allowed to spend more than they used to do. It should however be noted that it is not compulsory that all the contestants must spend up to the ceiling.

The law has also permitted those candidates who may find it difficult to raise money for their electioneering project, to engage in crowdfunding. This is done when a contestant who has rich friends, gets a donation from his friends.

The fact that individuals can now donate N50m in support of their preferred candidates has also made fundraising for political campaigns easier.

Section 95 (2) of the new Act has also stated that state apparatus (money, vehicles, personnel, aircraft, public buildings) including the media shall not be employed to the advantage or disadvantage of any political party or candidate at any election. This is perhaps meant to caution the incumbent President, Governors and local government chairmen from using their positions for an undue advantage over other candidates in an election.

The penalties for breach of the limitation are contained in Section, 88 (9) of the Act, “A candidate who knowingly acts in contravention of this section, commits an offence and is liable on conviction to a fine of 1% of the amount permitted as the limit of campaign expenditure under this Act or imprisonment for a term not more than 12 months or both.”

Sub-section (10) says, “Any individual who knowingly acts in contravention of subsection (9) is liable on conviction to a maximum fine of N500, 000 or imprisonment for a term of nine months or both.” While sub. (11) says “An accountant who falsifies, or conspires or aids a candidate to forge or falsify a document relating to his expenditure at an election or receipt or donation for the election or in any way aids and abets the contravention of the provisions of this section commits an offence and is liable on conviction to a fine of N3, 000,000 or imprisonment for a term of three years or both.”

For the political parties, the Act in s.89 (2) says that election expenses incurred by a political party for the management or the conduct of an election shall be determined by the Commission (i.e. INEC) in consultation with the political parties.

Section 90(3) says “A political party shall not accept any monetary or other contribution which is more than N50, 000,000 unless it can identify the source of the money or other contribution to the Commission.” This is from N100, 000 prescribed in s. 93(3) of EA 2010. The implication of this is that a lot of monies from anonymous sources could be mobilised to fund political parties in Nigeria.

The political parties according to the new Electoral Act are expected to file three reports to the election management bodies, i.e. INEC. The first is the annual report. S. 86. (1) of the Act says “Every political party shall submit to the Commission a detailed annual statement of assets and liabilities and analysis of its sources of funds and other assets, together with a statement of its expenditure including hard and soft copy of its list of members or in such a form as the Commission may require”.

It would also be recalled that sourcing funds for elections has been a major issue in the country.

In September this year, a group acting under the auspices of the Tinubu-Shettima Connect accused Peter Obi and the Labour Party of violating the provisions of the Electoral Act by engaging in the raising of funds from abroad through unknown sources, warning that there is a dire consequence for such action.

The group called on INEC to, without delay, stop Obi and his running mate, Yusuf Datti Baba-Ahmed, from contesting the 2023 presidential election.

The group also threatened to commence legal action against Obi, his running mate and INEC, as well as to prevent the Labour Party from participating in the 2023 presidential election for engaging in activities that contravene the Electoral Act 2022.

In a statement signed by its convener, Adebanjo Moyosore, the group said it was illegal to raise campaign funds outside Nigeria through unknown sources or unidentified groups.

This development came on the heels of the inauguration of an 11-man Diaspora Committee to organise fund-raising activities, among others, by the National Chairman of Labour Party, Julius Abure, at the national headquarters of the party in Abuja.

The inauguration also came a day after the party’s Diaspora support groups pledged to crowdfund $150m and N100bn for Obi’s campaign.

Moyosore said the inauguration of a Diaspora committee by the leadership of Labour Party to gather campaign funds from Nigerians in the Diaspora for Obi’s presidential campaign was not only illegal but also criminal.

He said it was “a matter of great public concern as the country has moved from its old practice with INEC trying to bring perfection to the electoral process, unfortunately a few individuals who think they can get away with deliberate act to undermine the electoral law of the land, have already started making sinister moves even when the campaigns are yet to begin in earnest.

“Section 85 of the Electoral Act has clearly explained this. Also, Section 85 (a) (b) provides that any political party that:

“(a) holds or possesses any fund outside Nigeria in contravention of section 225 (3) (a) of the Constitution, commits an offence, and shall on conviction forfeit the funds or assets purchased with such funds to the Commission and in addition may be liable to a fine of at least N5,000,000; or “(b) retains any fund or other asset remitted to it from outside Nigeria in contravention of section 225 (3) (a) of the Constitution commits an offence and shall on conviction forfeit the funds or assets to the Commission and in addition may be liable to a fine of at l Also, citing a provision of the 1999 Constitution (as amended), Adebanjo said the law forbids possession of funds by the candidate or political party from overseas.

He said: “Section 225 (2) (3) (4) (a) (b) & (5) of the Constitution provides that:

“225(2) Every political party shall submit to the Independent National Electoral Commission a detailed annual statement and analysis of its sources of funds and other assets together with a similar statement of its expenditure in such form as the Commission may require.

“225(3) No political party shall –

“(a) hold or possess any funds or other assets outside Nigeria; or

“(b) be entitled to retain any funds or assets remitted or sent to it from outside Nigeria.

” 225(4) Any funds or other assets remitted or sent to a political party from outside Nigeria shall be paid over or transferred to the Commission within twenty-one days of its receipt with such information as the Commission may require.”

He noted that the development was worrisome, especially at a time like this when the country’s anti-graft agencies were battling with money laundering from criminal syndicates and traffickers.

It would also be recalled that the National Chairman of the Labour Party (LP), Barrister Julius Abure, while inaugurating an 11-member committee to steer its Diaspora activities to be able to harness the political fortunes of Nigerians in the Diaspora for the Labour Party, said the committee would, among other things, source funding to prosecute the 2023 presidential target of the Labour Party and its candidate, Mr. Peter Obi.

Abure mandated the committee to ensure that it was accountable to Nigerians as he said the candidate they are projecting for the number one job in the country had inspired a movement of Nigerians who want to take their country back and accountability remained the watchword.

Meanwhile, the LP Presidential Candidate, Peter Obi responded to the accusations made by the APC chieftain, Okoi Ofem Obono-Obla, who claimed he was organising a Diaspora group to raise funds from Nigerians living abroad for election campaigns, saying his recent trip abroad was not a fundraising mission but a trip to sensitise and carry along Nigerians abroad on his upcoming agenda of rebuilding the country.

Speaking with THEWILL, Sesan Laoye, a public affairs analyst based in Abuja, said the Electoral Act 2022 has done well over the limitation to election campaign by the candidates and parties.

He also welcomes the INEC’s resolve to monitor the candidates and the parties concerning their expenses in the process of the next year’s election.

“But INEC is like a dog that can only bark but cannot bite. INEC cannot arrest offenders who broke the law on the limitation to election expenses. I will rather advise the INEC to work hand in hand with the Police and the Economic and Financial Commission, (EFCC) to get the culprits to book”.

As the parties kick off their campaign and with less than 100 days before the general election takes place next year, we will wait and see how effectively the INEC can monitor electioneering expenditure and how it will bring defaulters to book.

About the Author

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AYO ESAN, has been actively reporting and analyzing political events for different newspapers for over 18 years. He has also successfully covered national and state elections in Nigeria since the inception of this democracy in 1999.

Ayo Esan, THEWILLhttps://thewillnews.com
AYO ESAN, has been actively reporting and analyzing political events for different newspapers for over 18 years. He has also successfully covered national and state elections in Nigeria since the inception of this democracy in 1999.

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