A New Era of CSR in Nigeria

Have you heard about the new focus on CSR in Nigeria? It’s pretty interesting how the national assembly is now seriously gauging the CSR efforts of companies. Gone are the days when companies could just launch one big CSR project and get a pat on the back. Now, they’re expected to actually integrate CSR into their core operations and report on it transparently.

A recent study by Sarah Makau in the American Journal of Accounting really highlights this shift. It shows that there’s a positive correlation between CSR reporting and various aspects of firm performance. The study emphasizes how important transparency, accountability, and long-term value creation are for companies. So, it’s no longer just about doing good; it’s about being seen to do good consistently and transparently.

Communities are also getting more vocal about their expectations from the companies operating in their areas. Take the recent case involving the Director-General of NIMASA. The House of Representatives received a petition against him, alleging that the agency failed to deliver on its CSR commitments to coastal communities. Instead of launching educational and skills acquisition programs as promised, the DG was accused of building a Maritime Skill Acquisition Centre and a Twin Lecture Theatre in Kaduna State, his home region. This has really ruffled feathers because those coastal communities were counting on NIMASA’s support to improve their livelihoods.

There are plenty of examples like this that show it’s no longer business as usual.

Maybe a new definition of the term, CSR has also become necessary. Let’s say that CSR in the modern era now refers to the comprehensive and genuine integration of sustainable, ethical, and community-focused practices into the core business strategies and operations of a company. This approach emphasizes transparency, accountability, and long-term value creation, ensuring that business activities positively impact the environment, society, and economy while fostering meaningful and continuous engagement with all stakeholders.

You see?

Corporates are now statutorily required to embark on serious, meaningful CSR projects that benefit the people directly. This shift means that companies must genuinely invest in pro-poor, pro-people initiatives if they want to maintain a good standing and operate in a peaceful and supportive environment. It’s a significant change, but ultimately, it’s a positive step towards more responsible and sustainable business practices in Nigeria.