The Political Finance Monitoring Group (PFMG), an umbrella body of Political Parties, the Media, Professional Bodies, Anti Corruption Agencies and Non Governmental Organisations working for the enhancement of transparency and accountability of political party and election financing in Nigeria held its second meeting at Denis Hotel, Wuse Zone 2 Abuja, on the 13th Day of September 2006. The meeting of the PFMG was convened with the support of IFES Nigeria and focused on the adoption of a Memorandum of Understanding to regulate the PFMG (hereinafter called the “Abuja Memorandum”) and the review of the political finance provisions of the Electoral Act 2006.

Introduction

The Political Finance Monitoring Group (PFMG), an umbrella body of Political Parties, the Media, Professional Bodies, Anti Corruption Agencies and Non Governmental Organisations working for the enhancement of transparency and accountability of political party and election financing in Nigeria held its second meeting at Denis Hotel, Wuse Zone 2 Abuja, on the 13th Day of September 2006. The meeting of the PFMG was convened with the support of IFES Nigeria and focused on the adoption of a Memorandum of Understanding to regulate the PFMG (hereinafter called the “Abuja Memorandum”) and the review of the political finance provisions of the Electoral Act 2006. 

The formation of the PFMG was based on the perverse and negative influence of money and use of state and administrative resources in previous elections and the need to draw popular attention, with a view to take proactive and remedial action, to the inextricable link between abuse of political finance regulations, corruption in governance and the underdevelopment of Nigeria.

Participants Noted The Following

1    The need to expand the PFMG to include all relevant stakeholders who can contribute to the evolution of a progressive political finance culture in Nigeria,

2.    The work undertaken by the Independent National Electoral Commission (INEC) in collaboration with IFES in devising a Political Finance Handbook and Manual which will facilitate and give guidance to the reports of Political Parties on Political Financing,

3.    The undertaking by INEC to organize free, fair and credible polls in 2007 and INEC’s fundamental role in enforcing political finance regulations,

4.    The role of the Anti-corruption agencies including the Economic and Financial Crimes Commission, Independent Corrupt Practices Commission, the Police etc and other federal agencies like the Federal Inland Revenue Service in the enhancement of transparency and accountability in the  political finance regime of Nigeria,

5.    Collaboration by the political parties, full disclosure and voluntary compliance with political finance regulations will be a step in the right direction towards enthroning a disciplined political finance regime,

6.    Recognised the limitations placed by the Companies and Allied Matters Act and other laws on political financing by companies and corporate bodies,

7.    The low level compliance with reporting regulations by political parties and candidates in previous elections,

8.    The contradictions between S89(1) and S.94 (3) of the Electoral Act; while the former prescribes a period of 90 days from the date of the election for the submission of audited reports of election expenses of a political party, the latter prescribes six months.

The PFMG Thereafter Resolved As Follows


a. Membership of the PFMG will be based on subscription to the values and principles of the Abuja Memorandum and a commitment to adhere to the provisions of the Constitution of the Federal Republic of Nigeria 1999 and the 2006 Electoral Act on political finance,

b.  International Agencies shall participate as observers while Nigerian groups shall be full members,

c.    There is the need for INEC, in consultation with political parties, to expeditiously determine the limits of election expenses to be incurred by political parties in accordance with S 94 (2) of the Electoral Act 2006,

d.    Flowing from the above, there is also the need for INEC to determine the limits of contributions by individuals and organizations to political parties,

e.   The attempt at defining election expenses in S.94 (1) limiting it  to expenses “incurred …within the period from the date notice is given by the Commission to conduct an election up to and including the polling day in respect of the particular election” is nebulous and will encourage front loading of expenses by political parties and candidates. Essentially major electioneering expenses in excess of the limits will be incurred before the date notice is given by the Commission for the election and this will be perfectly legal!, INEC should clarify this provision.

1.Flowing from the foregoing, INEC should clarify what constitutes election expenses in accordance with S.94 (1) of the Electoral Act,

2. The distinction between political party expenses and candidate’s expenses by the Electoral Act in respect of the elections serves no useful purpose and provides a leeway for the enhanced monetisation of electioneering,

3.  S. 93 (9) of the Act limiting donations to election expenses of a candidate to one million naira should be interpreted to include in-kind and other contributions other than money,

4.  S.95 (3) of the Electoral Act is confusing and appears to contradict S.95 (1) and at the same time appears to permit anonymous donations below one hundred thousand naira,

5. INEC should consider reviewing relevant sections of the Political Finance Handbook to bring them in conformity with the extant Electoral Act,

Participants acknowledge the support of IFES in convening this second meeting