“SERAP Sues INEC Over Alleged ₦800bn Diversion By APC Governors” — Seeks Probe Of Campaign Financing, Donors And Source Of Funds

The Socio-Economic Rights and Action Project (SERAP) has initiated a significant lawsuit against the Independent National Electoral Commission (INEC) in Nigeria. The suit, filed at the Federal High Court in Abuja, seeks an order of mandamus compelling INEC to investigate allegations that governors elected under the All Progressives Congress (APC) have diverted an estimated ₦800 billion from Federation Account Allocation Committee (FAAC) funds for political and campaign activities. SERAP contends that this alleged diversion of public resources for partisan political purposes distorts electoral competition, undermines the integrity of the 2027 general elections, and violates constitutional principles guaranteeing free, fair, and transparent elections. The case highlights critical issues surrounding campaign finance transparency, accountability, and the enforcement powers of Nigeria's electoral body.

Nigeria's democratic landscape is once again at the forefront of a crucial legal battle concerning electoral integrity and public accountability. The Socio-Economic Rights and Action Project (SERAP) has taken a decisive step by filing a lawsuit against the Independent National Electoral Commission (INEC), seeking judicial intervention to compel an investigation into alleged massive financial impropriety. The core of the suit revolves around claims that governors elected on the platform of the All Progressives Congress (APC) have diverted a staggering ₦800 billion from the Federation Account Allocation Committee (FAAC) for political and campaign financing, specifically to support a potential 2027 re-election bid.

This legal action underscores the persistent challenges of political finance regulation in Nigeria and raises fundamental questions about the transparency of campaign funding, the lawful use of public resources, and the efficacy of regulatory oversight. The outcome of SERAP's suit, marked FHC/ABJ/CS/1426/2026, could set a significant precedent for how campaign finance violations are addressed in the country, potentially strengthening INEC's enforcement capabilities and enhancing public trust in the electoral process. This article will delve into the legal framework governing campaign finance in Nigeria, analyze the implications of SERAP's suit, and discuss the broader ramifications for political accountability.

The legal framework governing political party and campaign financing in Nigeria is primarily enshrined in the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the Electoral Act, 2022. Section 225(2) of the Constitution mandates every political party to submit to INEC a detailed annual statement and analysis of its sources of funds and expenditure. Furthermore, Section 225(5) grants INEC the power to direct political parties regarding the books or records of financial transactions they must keep and to examine such records. These provisions aim to ensure transparency and accountability in political party operations.

The Electoral Act, 2022, significantly strengthens these constitutional provisions by imposing stricter regulations on campaign finance. It sets limits on individual and corporate contributions to political parties and candidates, with a maximum of ₦50 million from any individual or entity to a candidate or party. The Act also specifies maximum expenditure limits for various elective positions, such as ₦5 billion for a presidential candidate and ₦1 billion for a governorship candidate. Crucially, the Act prohibits political parties from accepting anonymous monetary or other contributions and mandates disclosure of sources for contributions exceeding ₦50 million. Foreign funding of political parties and candidates is also expressly prohibited.

INEC, as Nigeria's electoral management body, is constitutionally and statutorily empowered to monitor the organization and operation of political parties, including their finances, and to arrange for the annual examination and auditing of their accounts. Its mandate includes ensuring compliance with campaign finance regulations and imposing penalties for non-compliance, which can include fines and forfeiture of excess funds. Beyond electoral laws, the Corrupt Practices and Other Related Offences Act, 2000 (ICPC Act) and the Money Laundering (Prevention and Prohibition) Act, 2022, provide additional layers of legal recourse against the misuse of public funds and illicit financial flows, with provisions against gratification, abuse of office, and making false statements.

SERAP's lawsuit is predicated on the alleged failure of INEC to activate its constitutional and statutory powers to investigate the claims of diversion of ₦800 billion from FAAC allocations by APC governors for political and campaign purposes. The organization argues that such a diversion, if proven, constitutes a grave abuse of state resources, distorts electoral competition, and undermines the fundamental principles of free and fair elections enshrined in the 1999 Constitution. The suit seeks an order of mandamus, a prerogative writ compelling a public body to perform a public duty, to direct INEC to investigate these allegations and demand full disclosure from the governors and the APC regarding the contributions, including donor identities and sources of funds.

INEC's powers to investigate and enforce campaign finance regulations are extensive under the Electoral Act, 2022. Sections 87, 88, 89, 90, and 91 of the Act empower INEC to set limits on contributions and expenditures, demand disclosure, and impose sanctions. For instance, Section 91(9) of the Electoral Act, 2022, prohibits individuals or entities from donating more than ₦50 million to any candidate or political party, with penalties for contravention. Political parties are also required to submit audited reports of their election expenses and contributions within specified periods, including names, addresses, and occupations of donors. The alleged monthly contributions from FAAC allocations, if true, would likely violate these provisions, particularly those concerning the source of funds and potential exceeding of contribution limits.

The challenge for INEC, and indeed for the Nigerian legal system, lies in the effective enforcement of these robust provisions. Historically, enforcement of campaign finance laws has been weak, with limited compliance in disclosure and few prosecutions for breaches. The opaque nature of political financing in Nigeria often allows for the circumvention of regulations, including the use of informal funding channels and the diversion of public resources. The alleged diversion of FAAC funds, which are public monies intended for state development and governance, also implicates anti-corruption laws. Section 19 of the Corrupt Practices and Other Related Offences Act, 2000, prohibits public officers from using their office or position to confer any corrupt or unfair advantage upon themselves or their associates. Similarly, Section 16 addresses false statements or returns by officers managing public revenue. The Money Laundering (Prevention and Prohibition) Act, 2022, with its provisions on suspicious transactions and large cash payments, could also be relevant in tracing and prosecuting illicit financial flows.

SERAP's reliance on mandamus seeks to compel INEC to perform its statutory duty, arguing that the commission cannot ignore allegations of such magnitude that threaten the credibility of the electoral process. The case highlights the critical need for inter-agency cooperation between INEC and anti-corruption bodies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to effectively investigate and prosecute such complex financial crimes involving public funds and political financing. The alleged use of public funds for political advantage undermines democratic integrity and public trust, making a thorough investigation imperative.

The lawsuit filed by SERAP against INEC represents a pivotal moment in Nigeria's ongoing struggle for transparent and accountable governance, particularly concerning the financing of political campaigns. The alleged diversion of ₦800 billion in public funds for political purposes, if substantiated, would not only constitute a grave breach of electoral laws but also a profound betrayal of public trust and a direct assault on the integrity of the democratic process. The case serves as a critical test of INEC's commitment and capacity to enforce the robust provisions of the Electoral Act, 2022, and its constitutional mandate to ensure free, fair, and credible elections.

For legal practitioners, this case underscores the increasing scrutiny on political finance and the potential for public interest litigation to drive accountability. Attorneys advising political parties, candidates, or public officials must be acutely aware of the stringent requirements of the Electoral Act, 2022, regarding campaign contributions, expenditure limits, and disclosure obligations, as well as the broader implications of anti-corruption and money laundering legislation. The outcome of FHC/ABJ/CS/1426/2026 will be closely watched, as a favourable ruling for SERAP could empower INEC to take more decisive action against financial malpractices in elections, potentially leading to greater transparency, a more level playing field for political competition, and a stronger foundation for Nigeria's democracy.