CSR’s Role in Addressing the “Resource Curse”

In a powerful call to action, the Obi of Onitsha, Nnaemeka Achebe, has recently likened Nigeria’s persistent corruption and mismanagement to “milking the cow to death,” urging political leaders to rethink their priorities.

His words resonate deeply within the framework of Corporate Social Responsibility (CSR), emphasizing the urgent need for ethical governance and accountability in managing the nation’s resources.

“People go into public office not to serve the public, but to serve their interests. Either we keep doing that and milk the cow to death, or we do the opposite and place Nigeria above all else,” the Obi stated.

This metaphor aptly captures the ongoing exploitation of Nigeria’s oil wealth, a critical resource that, according to the World Bank, accounts for 40% of GDP, 70% of budget revenue, and 95% of foreign exchange earnings. However, instead of leveraging this wealth for sustainable development, systemic corruption and mismanagement have left millions in abject poverty and the nation’s economy in peril.

Corporate entities, particularly those in the oil and gas sector, bear a significant responsibility in counteracting this exploitative culture. They must move beyond profit motives and invest in community-driven initiatives, transparency, and innovation. Unfortunately, the Federal Government and oil-dependent institutions have failed to emulate such CSR principles. Massive theft and mismanagement of oil resources are rampant, with former President Muhammadu Buhari acknowledging that $150 billion in oil income was lost to looting between 2005 and 2015.

Illicit financial flows also exacerbate the situation. Former ICPC Chairman Bolaji Owasanoye revealed in 2021 that Nigeria loses $10 billion annually to such activities. These staggering losses highlight the need for corporate and public institutions to align their operations with CSR principles like accountability and sustainability.

The trail of abandoned public projects is another glaring example of Nigeria’s governance failures. The Chartered Institute of Project Managers of Nigeria estimates that over N17 trillion worth of projects lie abandoned nationwide. The Ajaokuta Steel Project, a colossal initiative meant to catalyze industrial development, has consumed $10 billion over 45 years without yielding results. Meanwhile, infrastructure projects such as the Lagos-Ibadan and Sagamu-Ore-Benin expressways remain in perpetual reconstruction, draining public funds.

These failures not only betray public trust but also undermine corporate confidence in investing in Nigeria’s development. CSR-focused governance could mitigate such inefficiencies by fostering partnerships between corporations, government, and civil society to ensure project completion and community benefit.

Corruption thrives when there are no consequences. From the infamous $12.4 billion Gulf Oil War windfall scandal to recent high-profile fraud cases, Nigeria’s leaders have consistently undermined public resources. Anti-corruption agencies like the EFCC often make headlines for tracing illicit funds or assets, yet convictions are rare, and offenders are frequently pardoned or acquitted on technicalities.

For example, while ex-governors like Joshua Dariye and Uzor Kalu were convicted of embezzling billions, their cases either ended in pardons or overturned verdicts. This culture of impunity not only erodes public confidence but also deters socially responsible businesses from investing in Nigeria.

Ethical leadership, as seen in nations that prioritize CSR, is the cornerstone of sustainable development. In China, a former justice minister was sentenced to life imprisonment for bribery involving over $16 million—an example of accountability that Nigeria’s leaders could emulate. In stark contrast, Nigerian legislators earn exorbitant salaries—**N21 million monthly for senators—**and channel billions into dubious constituency projects with little to show for it.

Corporate stakeholders can play a transformative role by advocating for governance reforms that prioritize the public good over private gain. Companies must integrate CSR principles not just in their operations but also in their engagement with policymakers to foster ethical governance.

At its core, CSR is about creating value for all stakeholders—businesses, communities, and governments alike. Nigeria’s leadership must embrace this ethos to turn the tide of corruption and inefficiency. By prioritizing transparency, innovation, and inclusivity, leaders can shift the narrative from “milking the cow to death” to empowering communities and ensuring the sustainability of national resources.

The Obi of Onitsha’s call to action should serve as a rallying cry for businesses, civil society, and government institutions to collaborate in addressing Nigeria’s governance challenges. Only through collective responsibility and ethical practices can the nation achieve its full potential and provide a sustainable future for its people.