The Nigerian House of Representatives is taking steps to enforce compliance with Corporate Social Responsibility (CSR) practices by enacting a new law to sanction companies that violate these obligations. This move was announced by Hon. Oby Orogbu, Chairman of the House Committee on Corporate Social Responsibility, during a public hearing on Tuesday.
Orogbu highlighted that numerous companies operating in Nigeria have repeatedly violated CSR laws, necessitating punitive measures. She also criticized the National Communications Commission (NCC), MTN, and Airtel for ignoring multiple invitations to appear before the committee, warning that failure to comply may result in arrest warrants.
“Section 89, 8 of the Constitution mandates individual companies as invited to make themselves available to parliament, but they break the law. MTN and Airtel take so much from our nation and feel too big to appear before the parliament. We will not tolerate that,” Orogbu stated.
She called for regulatory bodies to facilitate meetings between parliament and telecommunication companies, emphasizing the need for accountability and responsibility from these corporations. Orogbu also mentioned numerous petitions against various companies, including construction and oil firms, that have consistently disregarded CSR obligations.
Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, represented by Assistant Director Wondi Ndanusa, opposed the bill’s proposal to impose imprisonment penalties on defaulting companies. Instead, he suggested using persuasion to entrench CSR practices, citing the financial burdens many companies already face.
Bala Wuoir, representing the Oil Producers Trade Section, expressed concerns that the Petroleum Industry Act (PIA) already mandates oil companies to contribute 3% of their profits to the Niger Delta Development Commission (NDDC). He argued that additional CSR requirements would be burdensome and called for the exemption of oil companies from the bill’s proposals.
The Speaker of the House, represented by House Leader Hon. Julius Ihonvbere, noted that the bill aims to provide legal status and guidelines for corporate responsibility, enhancing coordination and regulation.
“This bill is one of the legislative processes to provide legal status and guidance to our corporate social responsibility in our country. Corporate social responsibility is a social obligation that corporate organisations discharge to their stakeholders, individuals, and communities in society. Often, these corporate responsibilities are rarely coordinated and documented,” Ihonvbere said.
The 3rd National Organisational Development Summit (NODS) continues to address the evolving challenges faced by CSOs, focusing on driving change and innovation for resilience and performance in the sector.
