Reforming Campaign Finance Laws to Shield Nigerian Democracy from State Capture

Abstract

Campaign finance has become one of the most critical threats to democratic governance in Nigeria. The rising cost of elections, weak enforcement of spending limits, and opaque sources of political funding have created conditions where wealthy individuals, political godfathers, and corporate interests exert disproportionate influence over electoral outcomes and public policy. This phenomenon commonly referred to as state capture, undermines democratic accountability, distorts policy priorities, and erodes public trust in governance. Although the Electoral Act 2022 introduced spending limits and disclosure requirements, enforcement remains weak due to institutional capacity constraints within the Independent National Electoral Commission (INEC) and limited coordination with anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). Without reforms, Nigeria’s electoral system risks becoming increasingly dominated by moneyed interests, reducing elections to a contest of financial power rather than democratic choice. To protect Nigeria’s democracy from state capture, the National Assembly may consider the following reforms: ✓ The National Assembly, through its Senate and House Committees on INEC and Electoral Matters may wish to initiate an amendment to Sections 94 of the Electoral Act 2026 to: Introduce mandatory digital reporting of campaign donations and expenditures; require real-time disclosure of donations above ₦50 million and mandate quarterly financial reporting by political parties. ✓ The Senate and House Committees on INEC and Electoral Matters, may wish to sponsor legislation empowering the Independent National Electoral Commission (INEC) to establish a Campaign Finance Monitoring and Audit Unit responsible for: auditing political party finances; monitoring campaign expenditures and conducting financial investigations during elections.