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Nigerian Companies and the Prohibition on Political Donations: A Paradigmatic Shift as a Panacea for Compliance

Journal: International Journal of Advanced engineering, Management and Science (Vol.4, No. 12)

Publication Date:

Authors : ;

Page : 786-792

Keywords : Political Finance; Campaign Funding; Political Donations; Company Law; Electoral Act.;

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Democratic rule is generally acclaimed as a better form of governance, but its operation does not appear to come cheap. This is especially so in Nigeria where new democratic dispensations are heralded by expensive electioneering campaigns. The funds for these campaigns are sourced from willing donors or through subtle coercion. Corporate organizations are easy prey to politicians. This paper is provoked by the frequency and blatancy with which corporate organizations in Nigeria donate to political parties and for political purposes without any sanctions despite the unambiguous prohibition in S.38 (2) of the Companies and Allied Matters Act (CAMA). This exposes the inability of the provision to halt or reduce this practice to the barest minimum and also reveals the unpopularity of the provision. The paper argued that it is not possible to completely extricate organizations from the political dynamics in their host committees and proffered some mitigating factors which will make the provision more acceptable to the people and more respected. The paper discovered normative reasons why the prohibition in S.38 (2) of CAMA is largely ignored.It therefore recommended wide ranging amendments to the provisions so as to enhance compliance, improve its enforcement strategies, reflect present day realities and align it with international best practices.

Last modified: 2018-12-18 19:28:39