PPF HANDBOOK

POLITICAL PARTY

FINANCE HANDBOOK

INEC

March 2005

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CONTENTS

Foreword 3

Chapter I History of Political Party Finance in Nigeria 4

Chapter II Relationship between INEC and Political Parties 12

Chapter III The Role of the Political Parties Monitoring Unit in Political
Party Finances 16

Chapter IV Political Party Funding and Finance- The Legal Perspective 19

Chapter V An overview of Party Finance and Accounts 25

Appendix Code of Conduct for Political Parties 30

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FOREWORD

Existing Nigerian Laws do not regulate the campaign expenditures of the individual
candidates who are contesting elections. However, the laws require the Commission to
exercise control over political campaign expenditures. The Constitutional and other legal
provisions envisage every political party to maintain proper accounts of its funds. Section
225 (2) of the Constitution specifically requires the political parties to disclose their
sources of funds and their manner of expenditures.

The political parties and their candidates draw campaign funds from diverse sources
which may be beyond the capacity of the Commission to fully monitor. Also the
Commission lacks any enabling authority to enforce strict obedience to the laws. As a
first step, it therefore becomes imperative for the Commission to device ways and
means of implementing the reporting, disclosure of all monies and assets received by
the political parties in aid of their campaign effort.

I feel confident that the Manual and the various reporting forms contained therein will
lead to a significant improvement of the administrative procedures and practices. The
ability of the Commission to enforce compliance with the various laws may be greatly
enhanced.

The development of the Manual has been greatly assisted by the International
Foundation for Election Systems (IFES). IFES made available to the Commission,
international experts on campaign finance. The experts spent several weeks in Nigeria,
working with the Commission, the political parties and other stakeholders. I commend
the efforts of all the resource persons, from the Commission, the political parties and
other stakeholders who worked co-operatively to develop the Manual.

Sir Abel I. Guobadia, KSA

Chairman 16 DECEMBER,
2004

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HISTORY OF POLITICAL PARTY FINANCE IN NIGERIA

Introduction
Nigeria is one of the most populous countries in the world and the largest in Africa, with
a population of approximately one hundred and twenty million people. Over three
decades of military rule distorted social values and undermined democratic institutions in
Nigeria. Also, the oil boom of the 1970s introduced increased cash flow that served to
deepen rent-seeking behavior in the country especially in the absence of a political
culture that promotes and supports transparency and accountability. The result has been
the pervasiveness of corruption in all spheres of public and private lives. This trend is
also encouraged by lack of social and economic empowerment for the majority of the
people who also are largely excluded from participating in the political process and have
no means to hold political leaders and their administrations accountable for their
decisions and actions.
The 1999 General Elections led to the handover from military to civilian rule in
May 1999. The political transition that started in 1999 advanced to its “second phase”
with the 2003 elections which represented the critical hurdle for democracy in Nigeria.
Until the April 2003 elections the country was generally believed never to have
successfully negotiated a handoff from one civilian, elected government to the next.1 But
the success of the 2003 elections could only mark a new degree of security from military
intervention in politics rather than the consolidation of democracy in Nigeria. The 2003
elections produced accepted winners and a new government was installed. But Nigeria’s
democratic institutions are largely weak and undeveloped. Arguably the democratic
system in Nigeria is still in its infancy, and forces are always at work that could
undermine the foundations of a new democracy. This is the context in which the
measure of success recorded in Nigeria’s political transition mainly provides the
challenges ahead in the task towards consolidation of democracy. One of the challenges
is ensuring transparency in the electoral process.
The journey to civil rule after the military incursion of 1983 dates back to the mid-
1980s. In his 1986 Budget Speech, President Ibrahim Babangida announced the setting
up of the Political Bureau to review Nigeria’s political history and identify a basic

1
. The 1983 elections were initially “successful,” but violence over the outcome of particularly the state-
level polls especially the gubernatorial elections provided an excuse for the military to take over power
within three months of the elections.

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philosophy of government for Nigeria. The inauguration of the Political Bureau was
openly welcomed by many Nigerians, and so was its profound analysis of Nigerian
Political Economy. According to the Report of the Political Bureau on the national debate
on the political future of Nigeria, Nigerians among other things expressed concerns
about the administration and funding of Political Parties especially the seemingly
freedom of limitations on Political Parties with respect to Party Funding during the 1979-
83 elections. The return of the military in 1983 and the series of Political Transition
Programmes by successive administrations did not significantly change the Political
Culture of corruption and lack of transparency in Nigerian politics.
The broad commitment of the present administration of Chief Olusegun
Obasanjo to governance reform, evident in the enactment of anti-graft laws and policies,
is indicative of new policy consciousness and official perception of the problem of
corruption. The Obasanjo administration set up a High-powered Technical Committee to
review the restructuring of governance at the local government level. The committee was
to, among other things, examine the problem of inefficiency and high cost of governance
in the country, with a view to reducing costs and wastes at the three tiers of government.
The committee was required to examine the high cost of Election Campaigns in the
country and consider, among other options, the desirability of Political Parties, rather
than individual office seekers, canvassing for votes in elections. Again President
Obasanjo, in an address at the INEC-Civil Society Forum Seminar on 27th November
2003, lamented at the dangers associated with uncontrolled use of money during
elections: His words:
With so much resources being deployed to capture elective offices, it is
not difficult to see the correlation between politics and the potential for
high level corruption. The greatest losers are the ordinary people, those
voters whose faith and investment in the system are hijacked and
subverted because money, not their will, is made the determining factor in
elections. Can we not move from politics of money and materialism to
politics of ideas, issues and development?

President Obasanjo, at the same forum, examined the cost of conducting

elections in Nigeria thus:
“Even more worrisome, however, is the total absence of any controls on
spending by candidates and parties towards elections. I have said that we
prepare for elections as if we are going to war, and l can state without
hesitation, drawing from my previous life, that the parties and candidates
together spent during the last elections, more than would have been
needed to fight a successful war. The will of the people cannot find
expression and flourish in the face of so much money directed solely at
achieving victory. Elective offices become mere commodities to be

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purchased by the highest bidder, and those who literally invest merely
see it as an avenue to recoup and make profits. Politics becomes
business, and the business of politics becomes merely to divert public
funds from the crying needs of our people for real development in their
lives.”

The relationship between money and politics is a powerful one with implications
for democracy, especially in new democracies. 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. The critical forces in this consciousness
mobilization include mass mobilization on global scale, capacity building for civil society
organizations and support for electoral reform programs by bilateral and multilateral
donors and development partners. All around the world there is increasing pressure for
the regulation of private funding to political parties. In the US, the McCain-Feingold Bill
was passed and in UK the Political Parties, Elections and Referendums Act was passed
in 1997 after a series of allegations of corruption. In South Africa the demand for
regulation is growing. At African regional level the AU Convention on Combating and
Preventing Corruption includes a clause on the importance of regulating private funding
and calls states to do so. As Nigeria derives more strength from the global current and
the new policy consciousness against corruption is institutionalized via the creation of
agencies and commissions, more attention need to be paid to how to regulate political
party funding. The links between party financing and corruption are so important that to
ignore party financing is simply to open wide the door for corruption. Looking into
Nigerian political history one realizes that there is much that need to be done in this
regard.

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Practices before 1998/99 elections

The 1959 election preceded the grant of Political Independence to Nigeria in 1960. The
electoral laws under which elections were conducted throughout the period of the 1950s
and 1960s were derived from the provision of the British Representation of the Peoples
Act of 1948/9 and regulations made in it. The 1959 elections were conducted under the
provision of the Nigeria (Electoral Provisions) Order-in-Council, LN 117 of 1958 enacted
by the British Parliament. During this period there was no clearly defined regulatory
framework on party finance and the funding of political parties was pre dominantly
through private funding as parties and candidates were responsible for election
expenses. The absence of strict legislation to regulate party finance made it possible for
politicians and political parties to engage in illegal party financing and corruption in the
First Republic. At least two dramatic cases of corruption involving political parties were
judicially investigated. In 1956, the Foster Sutton Tribunal of Enquiry investigated
allegation of impropriety in the conduct of some politicians from the National Council of
Nigerian Citizens (NCNC) with business interests in the African Continental Bank (ACB).
Similarly in 1962 the Coker Commission of Inquiry was set up to look into the affairs of
six Western Nigeria public corporations that were allegedly involved in corruption with
the leadership of the Action Group.
During the Nigeria’s Second Republic (1979 -1983) a combination of private and
public funding was used for the first time. The political parties occupied the central
position in the politics of the Second Republic. The1979 Constitution clearly states that
“No association other than a Political Party [was allowed to] canvas for votes for any
candidate at any election or contribute to the funds of any political party or to the election
expenses of any candidate at an election”. The 1979 Constitution in Section 205
empowers the National Assembly to make laws “for an annual grant to the Federal
Electoral Commission for disbursement to Political Parties on a fair and equitable basis
to assist them in the discharge of their function”. Government accordingly rendered
financial assistance to the parties by way of subventions. In addition, private funding,
except from outside Nigeria, was allowed, according to Section 205 of the 1979
Constitution. There was no limit on how much corporate body and individuals could
contribute to political parties. Apart from the ban on political parties from receiving
external funds as in Section 205 of the 1979 Constitution and the prohibition of
associations other than Political Parties from making contribution to the funds of Political

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Parties or the election of any candidate at any election, as in Section 201 of the 1979
Constitution, there were no stricter Constitutional or Statutory regulation on the use of
party financing such as those of disclosure of donations to Political Parties. The result
was illegal use of money to influence decision making in Political Parties and the political
process in general.
Although the 1979 Constitution provided however for some form of check
especially with respect to external control of political parties. Even that was not achieved
in the 1979-1983 elections. The loopholes were exploited by the financially and politically
ambitious few that eventually were able to use their wealth to hijack Political Parties of
their choice. With unbridled use of money little or no attention was paid to political
mobilization by those seeking elective positions. Politicians attached much importance to
money which they used to buy the votes of the electorates. The experiences of the 1979
and 1983 elections were such that political parties and politicians had unrestricted
freedom to use money from both legal and illegal sources to finance their campaigns
and other activities associated with their election expenses. During the Second Republic
the role and activities of ‘contractors’ in government and political parties, and other
cases of political ‘patronage’ became very rampant. The reports of the various special
tribunals that tried politicians and office holders revealed gross abuse of public office and
impropriety in dealing with political parties.

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Some Issues of Concern

Details of subventions to Political Parties are not readily available. But it is common
knowledge that Political Parties to some extent are funded by the Nigerian taxpayers.
This makes accountability and transparency in party financing very imperative and also
an issue of great national value.
Admittedly, there are no available records on the exact amount of money spent
by Candidates and Political Parties. However, there are indications of heavy reliance on
private funding in the last two elections in Nigeria. More so that virtually all the parties
lack the organizational capacity to generate their own income through other sources.
According to President Obasanjo, “the parties and candidates together spent during the
last elections, more than would have been needed to fight a successful war”. This view
of Mr. President is corroborated by a perceptive writer who observed that “More than any
election in Nigeria’s chequered political history, the 2003 national elections was
determined by how much money candidates had. The electoral process has become so
expensive that only the rich or those dependent on rich backers can run". The writer also
noted that "There is also the disturbing trend of questionable business people backing
candidates with ‘grey money”. The increasing influence of ‘godfatherism’ in
contemporary Nigerian politics can be linked to the influence of money in electoral
politics through uncontrolled party financing as was witnessed in the 2003 general
elections. The absence of effective regulation of the amount of private funding that
Political Party can receive from private sources made all forms of political mercantilism
attractive and possible.

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Conclusion
The issue of legal regulation on the activities of Political Parties and its finance-related
aspects often in most cases do not receive adequate attention in the first phase of
political transition as we have witnessed in Nigeria in the period between 1999 and
2003. But as the Nigerian political transition progresses towards the consolidation of the
foundation for democracy, the need for a clear set of rules and strict control over political
funds cannot be over-emphasized. The objectives of regulations concerning political
money can vary considerably, depending on the stage of democratic transition. In the
particular case of Nigeria, the aims of legislation on party finance should target the
following: (i) controlling fraud and political finance related corruption; (ii) promoting active
and efficient political parties; and (iii) ensuring openness and transparency in the
electoral process. Based on what exists on ground in Nigeria, the above can be
translated to reviewing the existing legislation to accommodate regulation of sources of
income of candidates and parties (including foreign funding, subsidies-in-kind, and
political expenditure) and paying more attention to implementation through sanctions.
Also regulation to promote financial transparency and accountability in the activities and
operations of political parties should be encouraged. We therefore recommend the
introduction of verifiable disclosure and procedures and enforceable ceilings for all
finances, whether party’s or candidate’s. Easy accessibility to basic information as who
gives to whom and for what should be guaranteed. There is also the need to draw the
line on the limits of contributions as well as decide whether it is more prudent to
contribute to the party, and not candidates. For this to be achieved there is need to
strengthen the capacity of INEC to deal with the problem of party finance. The Civil
Society and the Political Parties are critical stakeholders in the Nigerian Electoral
Process. Both have responsibility to promote civic and voter education on the negative
consequence of irregular party financing on democracy. The Political Parties have
responsibility to promote transparency and accountability in their operations. To be able
to do this effectively they need assistance such as this manual provides.
This manual is one effort in the direction to promote cooperation between INEC
and Political Parties toward promoting transparency in the Nigerian Electoral Process. Its
main purpose is to shed more light on the financial reporting requirements of Political
Parties in Nigeria. It is also expected to assist the parties to report their financial
transactions in a proper and transparent way. The manual is user-friendly introducing
and explaining new reporting forms prepared by INEC. We do hope that it would become

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a useful tool for all the Political Parties with respect to financial reporting and help INEC
to build closer relations with the Parties.

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CHAPTER II

THE RELATIONSHIP BETWEEN INEC AND POLITICAL PARTIES

1. Introduction

Election management bodies (EMBs) everywhere in the world necessarily interact with
other stakeholders in the electoral process in the discharge of their statutory functions.
Such include voters, political parties, security agencies, media organizations, observer
groups, non-governmental organizations (NGOs), other government agencies, etc. The
EMBs invariably owe some obligation to these stakeholders but the greatest obligation of
any EMB is to the voters and political parties.

2. INEC- Political Party Relationship Under the Constitution

The 1999 Constitution of the Federal Republic of Nigeria (Section 15) details the
functions of the Independent National Electoral Commission (INEC) The Section
empowers the Commission inter-alia … to:-

(a) organize, undertake and supervise all elections to the offices of the President and
Vice-President, the Governor and Deputy Governor of a State and to the membership of
the Senate, the House of Representatives and the House of Assembly of each State of
the Federation.

(b) register Political Parties in accordance with the provisions of the Constitution and an
Act of the National Assembly.

(c) monitor the organization and operation of the Political Parties, including their
finances.

(d) arrange for the annual examination and auditing of the funds and accounts of
Political Parties and publish a report on such examination and audit for public
information.

(e) monitor political campaigns and provide rules and regulations, which govern the
activities of the Political Parties.

The Constitutional provisions above define the functions of the Commission with respect
to the political parties and hence underscore the relationship between the Commission
and the political parties. The Commission as part of its responsibilities conducts the
registration of voters and the Federal and State Elections and the Area Council Elections
in the Federal Capital Territory (FCT). This is a process in which the political parties are
involved.

The registration of political parties is one of the important functions of the Commission
that directly affect political parties in its early life. In the first instance, a political party is
not technically a political party until it is certified as one through registration by the

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Commission albeit in accordance with the provisions of the Constitution as well as the
recent interpretation of the Constitution given by the Supreme Court (in the case of INEC
and ANOR V. Alhaji Balarabe Musa (2003) 3 NWLR (PART 806) 72.

The Commission is empowered by the Constitution to monitor the organization and

operation of the political parties at all levels including their finances. The Commission
also formulates rules and regulations governing political campaigns, and also monitors
the campaigns. In executing this function, INEC sends a delegation of its officials to
observe party conventions and congresses. A report of this observation is submitted
formally to the Commission as appropriate.

Political parties are expected to receive grants from the Federal Government through
INEC: the first is an annual grant, while the second grant is for election purposes. The
Commission appoints External Auditors to audit the financial accounts of political parties
as required by law. So far, parties do not seem to know the limit on political campaign
expenses as provided by law Section 84 (2) of the Electoral Act 2002 as amended which
is that the election expenses of a Political Party shall be limited to the sum determined
by multiplying N20 (twenty) naira by the number of names appearing in the final voters’
list for each constituency where there is a candidate sponsored by the Political Party. In
addition, no party has submitted a statement of its election expenses within the time limit
stipulated in the Electoral Act. Sections 225 and 226 of the 1999 Constitution provide for
political party financing and the supervisory role of INEC in matters relating to party
financing. The Commission on its part is encumbered in the discharge of its
responsibilities in this regard especially because of inadequacies in the law. Except
adequate support is given to the proposed reforms in this area by all the stakeholders in
electoral process, there is very little that can be achieved by the Commission alone.

3. Monitoring Political Party’s Organization and Operations

The monitoring role of the Commission is to check unrestricted use of money in politics
and in turn avoid a situation where a few rich individuals hijack a party for their own
personal interests which can create instability within the political system. Part of the
proposed reform requires political parties to disclose information regarding their
finances. This is to prevent seamy characters from infiltrating the political system and
bastardizing the democratic process.

The management of political party finances entails the keeping of books and records of
financial transactions as enshrined in the Constitution [Section 225(5)]. This is treated in
detail in another section of this manual. It is important that all political parties keep
accurate records of their financial transactions. In its monitoring responsibility, the
Commission is expected to:-

(a) audit and publish the Statement of Accounts of parties within the stipulated time in
national newspapers;

(b) ensure that no Political Party holds any funds or assets abroad, and that such funds
or assets received from abroad by a Political Party are transferred to the Commission as
required by law; and

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(c) prepare and submit to the National Assembly a report on the accounts and balance
sheet of every political party.
It is necessary for all political parties to understand the responsibilities and duties of the
Commission in relation to political parties especially, and also its role toward ensuring
effective electoral process. In this regard political parties are expected to cooperate with
the Commission or its duly authorized agents that may, in the course of its duties by law,
seek access to their books, accounts and vouchers. The Commission on its own is
expected to provide support to all the registered political parties by helping them develop
and implement efficient system of records keeping and information management.

4. Liaison Functions of the Commission

The Commission liaises with the parties routinely and administratively. To be able to
effectively carry out its liaisons functions, the Commission is expected to know the
locational address of the headquarters of all the registered political parties, and be able
to, through their addresses, deliver correspondence and other forms of communication
especially those conveying new developments regarding the activities of the
Commission, meeting notices, dates for elections etc. Effective communication between
the Commission and the parties no doubt helps to improved relationship.

5. INEC/Political Parties Consultative Forum

The Commission do meet with political parties to consult and interact on policy and
operational issues. In order to further enhance the relationship between the Commission
and political parties, an avenue for meeting of the two was established by the
Commission in March 2001. The idea behind this is to avail the two an opportunity to
consult and dialogue from time to time. The goal was to remove areas of friction as
much as possible. This meeting is called “INEC/POLITICAL PARTIES CONSULTATIVE
FORUM”. It was under the auspices of this forum that a “Code of Conduct” for political
parties was agreed upon. The document provides guiding principles in the relationship
between the following:-
(a) INEC and the political parties;
(b) Political parties themselves;
(c) Voters and the political parties;
(d) Political parties and the Government; and
(e) Political parties and the international community.

6. Conclusion

Good relationship between the Commission and political parties which is aided by
mutual understanding of role and responsibilities is extremely useful for democracy and
good governance. Both the Commission and the political parties must realized that they
are critical stakeholders in the electoral process; the political parties are the active
players while the Commission acts as the referee to ensure that all the parties play on a
level playing field and also by the rules.

The experience so far has its useful lessons for all sides. There is need for improvement
in the relationship between the Commission and the political parties. Two areas that
require urgent attention. There is growing concern about the influence of large
anonymous contributors to political parties. While there is need for stricter regulatory
framework, it should be realized that there is little point in making rules or regulations

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about political party finance and funding if this is not accompanied by necessary
provisions on enforcement and sanctions. On the parts of The Commission and the
political parties, both should be ready to work together to ensure effective compliance
with the rules on political finance. Also, another issue of concern quite related to the
above is the issue of disclosure of information on finance and the accuracy of reports
when submitted. Many parties are still lacking in this area. Political parties should see
the issue of disclosure of information as a way of making political parties and politicians
more accountable and transparent.

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CHAPTER III

THE ROLE OF THE COMMISSION IN POLITICAL PARTY

FINANCES

Political Party Finances are monies and assets generated and owned by the Political
Parties which are used in running their day-to-day activities and other expenditures.
These also include finances that are utilized in the general operations, management and
maintenance of the entire party structures. The 1999 Constitution of the Federal
Republic of Nigeria provides for the finances and other valuable assets of the Political
Parties to be generated from both internal and external source through membership
registration fees, levies, donations, subscriptions, etc Party funds can as well be
generated from public donations, gifts, proceeds from lawful investments and grants by
individuals or group of persons as allowed by law to the Political Parties.

Political Parties Finance worldwide is increasingly assuming new dimensions as

concerns are being expressed about the need to provide a level playing ground to
Political Parties and politicians. This can be guaranteed if all aspects of Political Party
Finances are closely coordinated, monitored and observed. However, concerns
expressed in this regard must not be mistaken to mean an attempt at streamlining the
sizes, the capacities and potentials of the Political Parties or the politicians. Rather, it is
a sincere desire that stems from growing fears of the likelihood that dominant Political
Parties and Politicians, unless otherwise closely monitored may eventually swallow up
smaller ones thereby leading to the enthronement of a one Party State and dictatorship.

Developed democracies over the years have not only demonstrated how successfully
finance related activities of politicians and Political Parties could be managed, but have
in the process roped- in non-governmental organizations and pro-democracy institutions
positively involved in promoting the spread of these lofty goals and objectives among
third world countries and emerging democracies. Nigeria being an emerging democracy
cannot afford to trail behind, hence the need to join the developed democracies.

Within the context of constitutional provisions, the Commission has paid considerable
attention to the organization and activities of the Political Parties since the conclusion of
the elections and the installation of a civilian government on 29th May, 1999.

For the Commission to have proper monitoring records of the activities of the Political
Parties, it has as one of its standing committees, the Political Parties Monitoring
Committee (PPMC), charged with responsibilities for monitoring the entire activities of
the Political Parties as provided for by the 1999 Constitution and other duties as spelt
out by the Electoral Act, 2002. The PPMC is serviced by the Political Parties Monitoring
Unit (PPMU).

Among the several duties and roles of the Political Party Monitoring Committee are: -

(a) Maintaining liaison with all the Political Parties;

(b) Holding quarterly meetings of the Commission with the Political Parties;

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(c) Developing a Code of Conduct for the Political Parties monitoring and
enforcing their compliance with laid down rules, regulations and
guidelines as contained in the Code of Conduct for Political Parties (See
Appendix);

(d) Advising appropriate arms of government on the provision and level of

funding to the parties;

(e) Developing guidelines for expenditure and reporting on the use of such
funds;

(f) Monitoring the Organization, Operations and Finances of the Political

Parties;

(g) Developing guidelines for the maintenance of financial records of the

Political Parties;

(h) Arranging for the annual examination and audit of the accounts and
funds of the parties; and

(i) Monitoring the conduct of Party Congresses and Conventions as and

when they are held.

From the foregoing, it is clear that the Commission through the PPMC plays very
important roles in overseeing the general activities and management of the Political
Parties Finances. However, the PPMC, needs to work more closely with the Political
Parties for greater mutual understanding and cooperation between the Commission and
the parties.

Furthermore, it is expected that the rules and regulations concerning the financial
activities of Political Parties are reviewed from time to time and are enforced by the
Commission to make the parties more alive to their responsibilities.

Political Parties should disclose information about how they raise their funds and acquire
assets, and the spending and disposal of same. This will help a great deal in the
campaign for transparency and accountability.

Disclosure will curb political corruption and enable the public know more about the flow
of money in the coffers of the parties. Disclosures, if properly managed will prevent the
inflow of funds from illegal or criminal sources.

Therefore, disclosure of sources of funds and declaration of assets and liabilities by the
Political Parties can go a long way in sanitizing our nascent democracy.

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BARRIERS AGAINST EFFECTIVE AUDITING OF THE POLITICAL PARTY

ACCOUNTS:

The Commission has occasionally been finding it difficult to carry out its roles effectively
as contained in the constitution because of a number of reasons some of which are: -

(1) The non-cooperative attitude of the political class and the Political
Parties;

(2) The inability to locate the Political Parties at their various given
addresses;

(3) The inability to differentiate between funds and other assets remitted
to the Political Parties from outside the country (as prohibited for by
section 225 (4) of the constitution) and lack of proper records of
membership dues as well as contributions of party wings/branches
located outside the country; and

(4) The absence of proper bookkeeping and records of financial

transactions.

(5) The problem of monitoring the source of funds spent by individual candidates
who not only fund the parties but their elections.

The Way Forward

a) The Commission should develop standard record keeping procedures and

books for the Political Parties;

b) The Political Parties should make available authentic and verifiable office
location addresses whenever changes are made;

c) The Political Parties should show greater interest and participate in the
activities of the Commission such as workshops, seminars etc;

d) INEC as a mark of transparency, equity and fairplay, will cause to be

published and put on the website all information contained in the Disclosure
Forms submitted by Political Parties for use of the general public and interest
groups.

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Chapter IV

POLITICAL PARTY FUNDING AND FINANCE – THE LEGAL

PERSPECTIVE
Political Party Funding and Finance constitute an important aspect of the Electoral
Process. The sources of funding and finance of Political Parties and the way and
manner these funds are spent largely determine the quality and acceptability or
otherwise of almost every election.

Accordingly, the 1999 Constitution and the Electoral Act 2002 have made provisions,
though not exhaustive, in respect of how Political Parties could source and/or receive
their funds. Limitations have also been placed on sourcing of funds from certain areas
and on the extent to which Political Parties could make electoral expenses.

A. PROVISIONS UNDER THE 1999 CONSTITUTION

The Constitution confers general powers on the Commission under Part 1 of the third
schedule to the Constitution particularly paragraph 15(c) thereof to Monitor the
Organisation and Operation of the Political Parties including their finances.

Further down to paragraph 15(d), the Commission is also empowered to arrange for the
annual examination and auditing of the Funds and Accounts of Political Parties and
publish a REPORT on such examination and audit for public information.

Finances of Political Parties are covered by Section 225 of the Constitution while Annual
Report on finances is covered by Section 226.

1. FINANCES OF POLITICAL PARTIES – SECTION 225

Section 225(1) mandates every Political Party to at such times and in such manner as
the Commission may require, submit to the Commission and publish a Statement of its
Assets and Liabilities.

Section 225(2) requires every Political Party to submit to the 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.
Section 225(3) prohibits every Political Party from holding or possessing funds or other
assets from outside Nigeria or retaining any such funds or assets remitted or sent from
outside Nigeria.

By Section 225(4) any such funds or assets remitted or sent to a Political Party must be
paid over or transferred to the Commission within twenty-one (21) days of its receipt
accompanied by such information as the Commission may require.

It is also the duty of the Commission under Section 225(5) to give directions to Political
Parties regarding the Books or Records of Financial Transactions which they shall keep
and, to examine all such Books and Records.

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Under Section 225(6) the Commission is empowered to delegate the powers conferred
on it under subsection 4 to any member of staff or a qualified auditor who must not be a
member of a Political Party.

2. ANNUAL REPORT ON FINANCES – SECTION 226

Section 226(1) makes it mandatory for the Commission to prepare every year, and
submit to the National Assembly a REPORT on the Accounts and Balance Sheet of
every Political Party.

By Section 226(2), it is the duty of the Commission to institute such investigations as will
enable it form an opinion as to whether proper Books of Accounts and Records have
been kept by a Political Party and to incorporate its findings in the REPORT to be sent to
the National Assembly.

Under Section 226(3), every member of the Commission or its duly authorized agent is
conferred with unfettered right to access at all times, the Books and Accounts and
Vouchers of all Political Parties and to request from the officers of the Political Party
such information and explanation as he deems necessary for the performance of his
duties under the Constitution.

B. PROVISIONS UNDER THE ELECTORAL ACT 2002

Provisions in respect of Political Party Funding and Finance are contained in part III of
the Electoral Act 2002 which also deals generally on Political Parties. Specifically, these
provisions are contained in Sections 77-84 of the Act and they cover a broad spectrum
of issues from offences in relation to finances of a Political Party through to power to limit
contribution to a Political Party down to election expenses of Political Parties.

In these provisions, the Electoral Act has attempted to provide the general legal frame
work by which Political Parties are expected to conduct their affairs especially relating to
funds and finances.

Perhaps, it may be pertinent to remind us also that this General Legal Frame Work as
provided for in the Electoral Act, stems from the broad legal frame work which are
already enshrined in the constitution.

1. OFFENCES IN RELATION TO FINANCES OF A POLITICAL PARTY –

SECTION 77

Section 77(a) provides for offences in respect of any Political Party that contravenes
Section 225(3) (a) of the Constitution which deals with prohibition of holding or
possessing any funds or other assets outside Nigeria by a Political Party.

Section 77(a) provides for offences in respect of any political party that contravenes
Section 225(3) (b) of the Constitution which deals with prohibition of retaining any fund
or other asset remitted or sent to a Political Party from outside Nigeria.

While S.77(a) prescribes for forfeiture of the funds or asset to the Commission in
addition to a fine of not more than N500,000.00 upon conviction in respect of

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contravention of Section 225(3)(a) of the Constitution, Section 77(b) prescribes forfeiture

of the funds or assets to the Commission in addition to a fine of not more than
N500,000.00 upon conviction in respect of contravention of Section 225(3)(b) of the
Constitution.

2. STATEMENT AS TO ELECTION EXPENSES – SECTION 79

Section 79(1) requires a Political Party to submit to the Commission on a prescribed

form, not later than 90 days from the date of the election a statement relating to its
election expenses which shall be in a separate audited account.

It is pertinent to note that reference to Section 100 of the Act in the provision is
erroneous. The correct section ought to be Section 84 which deals in extenso with
election expenses of Political Parties.

Section 79(2) prescribes a fine of N100,000.00 payable jointly and severally by leaders
of a Political Party upon conviction for contravention of the provisions of subsection (1)
above.

It is also instructive to observe that it would have been more appropriate if the provisions
of Section 79 had come immediately after Section 84 and probably what seemed like a
repetition of Section 76(1) in Section 84(3) should have been avoided.

3. GRANT TO POLITICAL PARTIES FOR ELECTION – SECTION 80

Section 80(1) empowers the National Assembly to approve a grant for disbursement to
Political Parties contesting elections under the Act.

By Section 80(2) such grant approved by the National Assembly shall be made to the
Commission which shall distribute same to the Political Parties as follows:

(a) 30% of the grant to be shared equally among the registered Political Parties
participating in respect of a general election for which the grant has been made;
and

(b) The outstanding 70% of the grant shall be shared proportionately among the
Political Parties after the result of the elections having regard to the number of
seats won by each party in the National Assembly.

It would appear that by the strict interpretation of this provision, a Political Party can only
qualify for grant if such a party participates in a general election. It is a considered view
that participation in this sense must be construed to mean sponsoring of one or more
candidates at the election. It is not sufficient for the party to be merely registered or to
have participated in the electoral campaign.

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4. ANNUAL GRANTS TO POLITICAL PARTIES FOR THEIR OPERATIONS –

SECTION 81

Section 81(1) also empowers the National Assembly to make an Annual Grant to the
Commission for distribution to registered Political Parties to assist them in their
operations. The ratio for distribution are as follows:

(a) 30% of the grant shall be shared equally among all the registered Political
Parties; and

(b) The remaining 70%of the grant to be shared proportionately among the
registered Political Parties according to the number of seats won by each party in
the National Assembly.

5. ELIGIBILITY TO RECEIVE GRANT – SECTION 82

Section 82 places what appears to be a stringent limitation to the eligibility or

qualification of a Political Party to receive grant by requiring such a party to win at least
ten (10) percent of the total votes cast in the local government election in at least two-
thirds of the states of the Federation.

However, the wrong cross reference to Section 93 in the Act which deals totally on a
different subject matter appears to have engendered confusion as to the true meaning
and interpretation of Section 82. If one takes the safest option of assuming that
reference to Section 93 means reference to Section 81, it leaves those “later day”
Political Parties who could not participate in the local government elections conducted
prior to their registration at a great disadvantage. This exactly could have been the
scenario in the last dispensation where those Political Parties registered after the local
government elections in 1998 could have been excluded from any grant pending of
course, the conduct of the last local government elections.

Again, by the strict interpretation of the provision of Section 82, it appears that Area
Councils do not form part of the calculation when computing what constitutes 10% of
two-thirds of the states of the Federation although the general opinion is that the Federal
Capital Territory (FCT) should in certain circumstances as this, be treated as a state.

6. POWER TO LIMIT CONTRIBUTION TO A POLITICAL PARTY – SECTION 83

Section 83(1) empowers the Commission to place limitation on the amount of money or
other assets, which an individual or corporate body can contribute to a Political Party
while Section 83 (2) makes it mandatory for every Political Party to maintain a record of
all contributions and amounts contributed.

From the tenor of the wordings of the provision of section 83(1) it seems that the
Commission has discretion whether or not to place such limitation as envisaged by the
Act and it appears that presently no such limitation exists.
Suffice it to submit that this is a very important provision which the Commission has not
taken full advantage of. Until the limitation as envisaged by the Act is placed by the
Commission, it would appear to be perfectly legal for an individual or corporate body to

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contribute any amount or asset to a Political Party. Again, it appears that the provision of
Section 83(2) is made subject to Section 83(1). It follows therefore that the Commission
may not rightly insist that parties comply with the provision of Section 83 (2) if it has not
placed the limitation in accordance with Section 83(1).

7. ELECTION EXPENSES OF POLITICAL PARTIES – SECTION 84:

Section 84(1) explains election expenses to mean expenses incurred by a Political Party
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.

Section 84(2) limits the expenses to be incurred by a Political Party for the management
or conduct of an election not exceeding in the aggregate the sum determined by
multiplying N20 (twenty) naira by the number of names appearing in the final voters’ list
for each constituency where there is a candidate sponsored by the Political Party. It has
been suggested that the limitation of election expenses to N20 (twenty) naira per voter is
unrealistic having regard to inflationary trend.

Section 84(3) provides that election expenses of a Political Party shall be submitted to
the Commission in a separate audited REPORT duly signed by the party’s auditors and
counter-signed by the Chairman of the party as the case may be and shall be supported
by a sworn affidavit by the signatories as to the correctness of its contents. The use of
the expression “as the case may be” presupposes that the framers of the Act may have
intended that another officer (probably the party secretary) could also countersign the
audited REPORT in the absence of the chairman. However, since it is not explicit, it
appears that it is only the Chairman of the party that is authorized to counter-sign the
audited report/return.

Section 84(4) requires the return to show clearly the amount of money expended by or
on behalf of the party on election expenses, including the items of expenditure and
commercial value of goods and services received for election purposes.

Section 84(5) makes it compulsory for the Political Party making the return to publish
same in at least two National Newspapers.

Section 84(6) prescribes a fine of N500,000.00 for a Political Party that incurs election
expenses beyond the limit stipulated in the Act.

Section 84(7) makes it mandatory for the Commission to make available for public
inspection during regular business hours at the national and state offices, the audited
returns of Political Parties and the publication shall include the name, address,
occupation and amount contributed by each contributor to a party.

It is also pertinent to point out that Section 78 of the Act mandates the Commission to
arrange for the annual examination and auditing of Funds and Accounts of Political
Parties and publish the report of such examination and audit in three National
Newspapers. The same section also prescribed the period to be covered by Annual
Statement to be the period from 1st January to 31st December of each year.

Finally, it is the considered view that the Act has made considerable provisions
regarding Party Funding and Finance. There are, no doubt, areas that need to be fine-

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tuned in order to bring them within the realm of present realities, like the ceiling on
election expenses as provided for under Section 84(2). There is also the need to correct
the wrong cross referencing that abound in the Act.

Nevertheless, it must be pointed out that quite a number of the provisions have not been
exhaustively and religiously followed. By the time they are fully followed and
implemented there would be a remarkable improvement in the electoral process.

It would be advisable therefore for all Political Parties to follow closely the provisions of
the law as regards Political Party Finance and Funding.

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CHAPTER V

AN OVERVIEW OF PARTY FINANCE AND ACCOUNTS

A Political Party Finance Manual is expected to be a synthesis of statutory enactments,

prescriptions of regulatory authorities, yearnings of all stakeholders in the political
process, and generally accepted statement of best accounting practices that will make
campaign and Political Party Finance to be more equitable, accountable and
transparent.

According to Max Weber, “Party Finance is among the most important and yet, for
obvious reasons, the least transparent chapters of party history’’.

Political Finance has a decisive effect on the very operations and the quality of
democracy and yet little attention is being paid to the issue of Party Funding and
Campaign Finance in Nigeria.

As the sophistication and complexity of communications and other technologies needed

to effectively compete for votes increase, so does the need for vast resources by
Political Parties to finance their electoral campaigns in more advanced democracies. In
emerging democracies such as Nigeria, the highly monetized political culture coupled
with the desperation of politicians to win elections at all cost has its attendant demand on
huge election financial outlay. These result in a headlong pursuit of funding sources,
fueled by campaign imperatives which have led many candidates and parties into
tailspin, as rules of conduct no longer respond to party ethics, principles and beliefs, but
rather are increasingly defined by expedience and urgency of fund raising.

As the former Italian Prime Minister, Bettino Craxi observed, “ what needs to be said ,
and which in any case everyone knows , is that the greater part of political funding
is irregular or illegal’’. Therefore, a Political Party Finance Manual has to address the
following areas of party finance and accounts.

i) Funding Sources (Private and/or Public Sources)

Political Parties are not private businesses but perform a public function and on
these perspective, Political Parties should receive ongoing public funding that will
enable them to carryout their regular activities. While some countries have sought to
eliminate corruption from their political and electoral systems by using public funds to
finance Political Parties, elsewhere, public funding arrangement has been
discontinued in favour of private financing with stringent accounting and public
reporting requirement. This latter viewpoint is premised on the fact that Political
Parties are freely established and deeply rooted in social and political conditions that
presuppose independence from the state and should not be funded by the state.
This Party Finance Manual is advocated and articulated on the issue of party funding
and accountability as a panacea to the smooth running of our political system.

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ii) Funding Limits

Political Parties may obtain funds for their operations from the following only:

a) membership fee;
b) income generated by property owned by political party;
c) profit from the income of the enterprises owned by Political Party;
d) public funding i.e. grant from the state; and
e) contributions from legal entities and natural persons.

Three thorny aspects of political contributions have always emerged for

consideration and which have given rise to funding limit on Party Finance. These are
volume of fund, origin of funds and equity in the electoral process. It is the desire of
the Electoral Act for limitation to be placed on contribution to party finances. It is
expected that in due course we may achieve the desired objective of that Electoral
Act.

iii) Campaign Finance

Campaign Finance is the funding of campaign expenditure. Campaign expenditure

is defined as any expenditure incurred by a party for electoral purposes; that is solely
for the purpose of enhancing the standing of or promoting electoral success for a
party at a forthcoming or future election. This includes issuing disparaging materials
relating to another party or its candidates.

Moreover, goods or services for which payments are made prior to the campaign
period, for use during the campaign period, shall be considered campaign
expenditures and, therefore, must fall within the campaign expenditure limit.

Campaign expenditure includes any expenditure incurred by a party in connection

with the following items:

• Political Party broadcasts;

• advertisement;
• distribution of unsolicited materials to electorates;
• circulation of manifesto or other policy documents;
• market research and canvassing;
• media / publicity;
• transportation; and
• rallies or other events.

iv. Campaign Expenditure Limit.

In more developed democracies for example in the United Kingdom, the Political Party
Election Referendum Act (PPERA) prescribes limit on Campaign Expenditure to be
incurred by all parties contesting a relevant Election within the ‘’regulated period’’ in
advance of an election. Under the backdrop of recent outcry over the increasing cost of

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Election Expenses in Nigeria, the Party Finance Manual has attempted to provide a limit
to Campaign Expenditure of parties/candidates in an election.

v) The Financial Procedures of Political Parties

So far we have attempted to explore the overall Financial Policies Framework of Political
Parties. In this section, our focus will shift to the system of capturing, documenting,
controlling and reporting on the financial events of Political Parties. The financial
procedures involve the pre-accounting, accounting and post accounting processing of
financial events.

Effective internal financial controls help to ensure that the party is not unnecessarily
exposed to avoidable financial risks and that financial information used for publication is
reliable. They also contribute to the safeguarding of assets, including the prevention and
detection of fraud. An ideal system would require each political party to appoint one
specific official (“agent”) who will have the following responsibilities:
1. Keeping complete and accurate records of the political finance activity of the
reporting entity;
2. Submitting reports about financial activity to INEC;
3. Approving all contributions and expenditures by the entity for compliance with
legal restrictions;
4. Following accepted accounting procedures in performing record-keeping and
reporting duties.

Most importantly, such a system foresees that all the funds should be channeled through
the “agent” and that all expenditure must be authorised by the “agent”. In addition,
“agent” must check incoming donations and expenses to ensure that they are in
conformity with the rules. System can impose serious and continuing duties on each of
the financial agents – to monitor donations received, to report same and to decline
others, and to submit proper accounts. Such an internal body must oversee compliance
with these requirements, institute action (using intra-party discipline and codes of
conduct) where necessary. The Political Parties have a clear and solid responsibility for
the management of their financial resources.

Generally, the handling of a financial event from its origination through the Accounting
and Auditing processes as defined by Generally Accepted Accounting Principles (GAAP)
and Auditing Guidelines will demonstrate adequately the Financial Procedures which are
expected to be followed by Political Parties.

A. The pre-accounting processing of financial activities of the party includes:

Budgeting and Budgetary Control Procedures;
Revenue Identification, Collection and Monitoring Procedures; and
Expenditure Origination, Approval and Payment Procedures.

B. The Accounting Process consists of the following stages:

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Recording of financial events in source documents e.g. Receipt

Vouchers, Invoices, Payments Vouchers, Pledges Form, etc;
Posting of source documents to primary records or book of original
entries e.g. Cash Book, Revenue Journals, Expenditure Journals
and General Journals; and
Posting to the ledger which is the principal Book of Accounts.

Ledgers are classified into two:

i) Subsidiary Ledgers which include the following:

Revenue ledger;
Expenditure ledger;
Debtors ledger;
Creditors and Accrual ledger;
Stock ledger;
Investment ledger;
Fixed Asset ledger;
Staff Advances ledger.
ii) General ledger is balanced at the end of Party Financial Year and extraction
of trial balances which must be balanced as a test of arithmetical accuracy of
postings in the general ledger.

C. Reporting on the Accounts

The last stage of the Accounting Process is the generation of reports in the forms of
Returns and Financial Statements that mirror the financial operation of the entity.
Section 225(1) and (2) of the Constitution require every Political Party to submit to INEC
and publish at such times and in such manner as the commission may require:
a) a statement of its assets and liabilities; and
b) a detailed Annual Statement and Analysis of its sources of funds and other
assets together with a similar statement of its expenditure

The Statement of Accounting Standard on Financial Reporting identified the

following Financial Statements to satisfy the Financial Reporting requirements of
an entity.
a. Balance Sheet or Statement of Affairs as at the last date of the entity
Accounting Year
b. Income and Expenditure Statement for the Accounting Year under review
c. Statement of Cash Flow for the Accounting Year
d. Notes to the Accounts which form an integral part of the Financial Statement
and these include:

Schedule of Fixed Assets;

Schedule of Creditors and Accruals;
Schedule of Debtors and Prepayments;
Schedule of Addition to Fixed Assets;
Schedule of Stock and Work-In-Progress;
Schedule of Rent;
Schedule of Investments;
Schedule of Cash and Bank Balances.

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D. The Post – Accounting Processes which are also referred to as the

Auditing Processes include:

The establishment and organisation of Internal Audit department to

carry out pre-approval Audit, Pre-payment Audit, Internal Control
Checks and Reviews, Post-Payment Audit, Analytical Review of
Financial Records and Statements.

The appointment of External Auditors to express an opinion on the

true and fair view of the Financial Statement as a reflection of the
Financial Operation of the Party for the period under review

The production and distribution of Audited Financial Statement with

Audit Management Letters for the Accounting Year being considered

This Party Financial Manual has dealt with Financial Procedures of

Political Parties under the following sections:

Party Finance (Financial Instructions) to cover -

• Budgeting and Budgetary Control Procedures;
• Revenue Control Procedures;
• Expenditure Control Procedures;
• Cash Control and Banking Procedures;
• Constitutional and other Statutory Provisions on Party Finance;
• Accounting Policies of Political Parties;
• Other Financial Instructions;

Party Finance: (forms and documents) such as;

• Receipts;
• Membership Fees Demand Notes;
• Membership Cards;
• Membership Application Forms;
• Donation and Contribution Acknowledgement Forms;
• Payment Vouchers;
• Advances Retirement Statement; and
• Journal Vouchers.

Party Accounts: (Basic Books of Accounts) such as:

• Bank Cash Book;
• Imprest Cash Book;
• Loans Register;
• Credits and Liabilities Register;
• Revenue Register;
• Expenditure Register;
• Property/Investment Register;
• Advances Register;
• Journal Registers;

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• Public Funding Register;

• Membership Register, Subsidiary ledger and General Ledger;
Donation and Contribution Register; and
• Branch Finance Control Register.

Party Finance: (Reporting Forms and Statements) which include:

Party Accounts Signatories and Specimen Signatures;

• Party Branch Offices, Location, Membership and Bank Accounts;
• Statement of Periodic Cash Movement of Party Headquarters and
Branch Offices;
• Total of Party Income Sources;
• Party Contribution Income by Natural Persons;
• Party Contribution Income by Legal Entities;
• Party Property/Investment Income;
• Profit from Companies Owned by Party;
• Non-monetary Donation to Party;
• Government Grant to Party;
• Party Expenditure Returns;
i. Campaign Expenditure Report
ii. Utility/Administrative Expenditure Report
iii. Promotional Expenditure Report
• Loans, Credits and Liabilities Report
• The Conventional Financial Statements of
i. Balance Sheet
ii. Income and Expenditure Statements
iii. Cash Flow Statements
iv. Notes to Financial Statements.

IN-KIND CONTRIBUTIONS

In-kind contributions of goods and services could be described as any goods and/or
services provided by any person in favour of the Political Parties’ activities. Examples of
notional market value of in-kind donations are:

• Leaflets that would normally cost N20,000 to print but are provided at a 30
percent discount: the party incurs N14,000 actual expenditure and N6,000
notional expenditure.
• A party is offered the use of a room in a supporter's home for a single committee
meeting lasting three hours. The notional commercial rental for one room for
three hours in a private home is less than 2000 Naira.
• Printing: for items printed by a supporter where no charge is made, you would be
expected to calculate a notional sum that is reasonable and based on a sensible
calculation. A party would also have to include not just the cost of the paper and
other materials but also the time for a paid member of staff to design, print and
fold the leaflets.

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CODE OF CONDUCT
FOR
POLITICAL PARTIES

INDEPENDENT NATIONAL ELECTORAL COMMISSION

March, 2003

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FOREWORD

All Nigerians have come to agree that political stability is a necessary condition for
economic and social development. Hitherto, elections in our country were a major cause
of political instability. However, it is evident from public commentaries that Nigerians
want the sustenance of democratic culture which has been rekindled with the success of
the 1998/99 transitional elections. It is the wish of the electorate that there should always
be peace and that the disruptive forces which plagued the elections prior to those of
1998/99 should never again resurface.

At one of the regular meetings of the political parties’ leaders and members of the
Commission in March 2001, it was agreed that frequent consultations and dialogue
would be necessary to check at an early stage all causes of possible misunderstanding.
It was thought difficult for the Commission and the Political parties to meet as frequently
as may be desired. Accordingly, it was agreed that a smaller consultative body of some
Commission’s members and few representatives from the then three political parties
drawn on equal basis be constituted. The INEC/Political Parties Consultative Forum was
set up.

The Consultative Forum was charged with the responsibility of articulating a Code of
Conduct for the Political Parties. The Code is to facilitate violence-free campaigns,
peaceful election day activities, conflict-free post-elections environment, strict
compliance with the electoral law at all stages of the election process, and that the ruling
party at whatever level of government does not enjoy undue advantage by virtue of its
incumbency or control of state organs and resources.

I am pleased that all the new parties have taken their places in the Forum and have
subscribed to this Code of Conduct. Strict adherence to its provisions will no doubt
impact positively on our electoral process.

Sir Abel I. Guobadia, KSA

Chairman

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INEDEPENDENT NATIONAL ELECTORAL COMMISSION

CODE OF CONDUCT FOR POLITICAL PARTIES

PREAMBLE

WHEREAS there is need for peace and public order, freedom of political campaigns and
compliance with electoral laws and regulations for the conduct of free, fair and credible
elections in Nigeria.

We the Political Parties of Nigeria have voluntarily set out in this code a system of rules
to guide our activities and we pledge to one another and to the Nigerian people that we
shall undertake to ensure that the code is fully publicized and brought to the notice of all
officers and members of our Parties and that the contents thereof are fully observed by
all.

Accordingly we do hereby make and give to ourselves the following code of conduct.

THE RULE OF LAW:

1. All Political Parties shall at all times uphold the rights and freedoms of the
Nigerian people, as guaranteed by law. In this context, every Political Party
shall provide equal opportunity to qualified persons to participate in electoral
activities.

2. All Political Parties shall abide by all the laws, rules and regulations of Nigeria
relating to elections and the maintenance of public order. In this regard, all
the parties shall fully cooperate with the police in any investigation and
processes of enforcement of the relevant laws, rules and regulations.
3. Subject to the relevant Laws and Regulations, all Political Parties have the
right and freedom to put forward their views to the electorate without

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hindrance. For this purpose, every Political Party shall respect the rights of all
participants in an election.

4. No Political Party shall use State apparatus including State owned print and
electronic media to the advantage or disadvantage of any other Political Party
or candidate at an election. That is to say, all ruling Political Parties shall
allow other Parties equal and fair access to the use of State owned print and
electronic media.

5. No Political Party shall engage in violent activity or intimidation of any kind, as

a way of demonstrating its strength or supremacy. Accordingly, all Political
Parties shall publicly condemn any form of political violence or intimidation in
all its ramifications.

6. Every Political Party shall at all fora and at all times avoid defamatory,
derogatory and insulting attacks on rival parties or individual personalities
through any form of communication, verbal or written.

CAMPAIGNS:
7. No political party or candidate shall during campaign resort to the use of
inflammatory language, provocative actions, images or manifestation that
incite violence, hatred, contempt or intimidation against another party or
candidate or any person or group of persons on grounds of ethnicity or
gender or for any other reason. Accordingly, no Political Party or candidate
shall issue any positive, pamphlet, leaflet or other publication that contains
any such incitement.

8. All Political Parties shall take all necessary steps to coordinate their
campaign activities in such a way as to avoid holding rallies, meetings,
marches or demonstrations close to one another at the same time.
Accordingly whenever the date, venue or timing of any such activities of
different Political Parties clash, their representatives will meet to resolve the
issue amicably, without resort to intimidation, force or violence.

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9. All Parties are required to file with the Commission details of their public
rallies and meetings in any particular area.

10. No Political Party or any person or group of persons acting in its name shall
obstruct, disrupt, break-up or in any way whatsoever interfere with a meeting,
rally, march, demonstration or any campaign activity of another Political
Party. In this regard, no party or any person or group of persons acting in its
name shall try to obstruct or prevent any person from participating in the
activities of another party.

11. All Political Parties shall separate party business from government business.
No Political Party shall use State vehicles, or other public resources for any
electioneering campaign or any other Party business.

12. Every Political Party shall expressly forbid its supporters from shouting its
slogan, wearing its identifying colours or other paraphernalia to the rallies and
any public gathering of other Political Parties.

13. All Political Parties shall instruct their members and supporters that no arms
or any object that can be used to cause injury shall be brought to a political
rally, meeting, march, demonstration or any other political function.

14. No Political Party or candidate shall prevent other parties or candidates from
pasting their posters or distributing their leaflets, hand bills and other publicity
materials in public place. Furthermore all parties and candidates shall give
directives to their members and supporters not to remove, destroy the
posters and other campaign materials of other parties or candidates.

ELECTIONS:

15. All Political Parties and candidates shall at all times cooperate fully with
election officials in the performance of their lawful duties, in order to ensure
peaceful and orderly elections.

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16. Every Party shall instruct its members and supporters that no weapon or any
object that can be used to cause injury shall be brought to the Polling Station,
and that no party attire, colours, symbol, emblem or other insignia shall be
worn to a Polling Station on Election Day.

17. All Political Parties and their candidates shall extend all necessary help and
cooperation to law-enforcement agents for purposes of ensuring the safety
and security of election officials and Party Agents on polling day.

18. All Political Parties and their candidates shall instruct their agents in
attendance at Polling Stations to perform their duties in accordance with the
electoral laws and regulations, and to cooperate fully with the election officials
for the efficient, transparent and uninterrupted conduct of the elections.

19. No Political Party and its agent shall engage in any of the following corrupt
practices:

i. Forcible occupation or invasion of a polling station

ii. Encouraging its supporter to cast more than one vote (multiple
voting).

iii. Encouraging any supporter to vote in the name of another person,

living, dead or fictitious (impersonation).

iv. Buying votes or offering any bribe, gift, reward, gratification or any
other monetary or material consideration or allurement to voters and
electoral officials.

v. Offering any form of inducement to a person to stand or not to stand

as a candidate, or to withdraw or not to withdraw his or her
candidature.

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vi. Canvassing for votes within the vicinity of a Polling Station on polling
day.

vii. Any other form of cheating or doing any act considered to be a

malpractice under the electoral laws and regulations.

20. Every Political Party and its officials shall pay due regard to the law restricting
access to the polling station to authorized persons only. Accordingly, no Party
official shall enter any polling station on polling day without express
permission from the Commission.

21. No official of a Political Party shall engage in confrontation or open argument

with election officials at the polling station. To this end, any complaint, protest
or challenge relating to processes and procedures at a Polling Station shall
either be routed through the Party Agent to the Presiding Officer or shall be
made directly to an officer of the Commission for appropriate resolution.
Thereafter, an aggrieved party or person is at liberty to seek redress in Court.

22. Definition code of conduct means “a set of rules of behaviour for Political
Parties and their supporters relating to their participation in an election
process, to which the parties ideally will voluntarily agree, and which may
subsequent to that agreement be incorporated in law”

23. We the undersigned representatives of the Political Parties hereby

collectively subscribe to this Code of Conduct.

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PPF HANDBOOK

S/NO PARTY NAME & DESIGNATION OF SIGN AND DATE

REPRESENTATIVE
1. AD
2. ANPP
3. APGA
4. APLP
5. ARP
6. BNPP
7. CPN
8. DA
9. GPN
10. JP
11. LDPN
12. MDJ
13. MMN
14. NAC
15. NAP
16. NCP
17. ND
18. NDP
19. NMMN
20. NNPP
21. NPC
22. NRP
23. PAC
24. PDP
25. PMP
26. PRP
27. PSD
28. PSP
29. UDP
30. UNPP

In the presence of the Independent National Electoral Commission (INEC)

ALHAJI (DR) SHEHU MUSA CFR

CHAIRMAN, INEC/POLITICAL, PARTY
CONSULTATIVE FORUM
MARCH, 2003

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