A LEGAL QUERY OF POLITICAL DONATIONS BY CORPORATE ORGANISATIONS IN NIGERIA

Abstract

This article argues that Section 43 of the Companies and Allied Matters Act 2020 enacts an unqualified statutory ban on corporate political financing in Nigeria. The issue is that this prohibition continues to be indirectly circumvented with minimal enforcement and a lack of corporate governance. This study goes beyond the prohibition and seeks to understand Section 43(2) from a broad corporate law perspective by assessing its legal scope (what is prohibited), basis, and consequences. Methodologically, the paper employs a doctrinal legal research technique, using statutory interpretation, existing theories, and corporate governance comparisons to uncover the limits of acceptable corporate conduct. Based on stakeholder and public-interest theories of corporate governance, the article contends that the prohibition serves to safeguard democratic integrity, curtail excessive corporate influence, and foster accountability in the political process. The article concludes that the current legal regime requires regulated vigilance, disclosure, and judicial consistency. It therefore recommends, among other measures, tighter sanctions, stronger firm-level compliance mechanisms, and increased regulatory oversight by the Corporate Affairs Commission to prevent political capture.