Reps To Sanction MTN, Airtel, Others For CSR Lapses - 1 year ago

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The House of Representatives Committee on Corporate Social Responsibility (CSR) is gearing up to sanction MTN, Airtel, and other companies for failing to fulfill their CSR obligations. During a public hearing in Abuja on Tuesday, Rep. Oby Orogbu, the committee chair, emphasized the necessity of enacting laws to penalize such offenders.

Orogbu issued a final warning to MTN and Airtel to honor the committee’s invitations or face arrest warrants. She criticized the companies, along with the National Communications Commission, for repeatedly ignoring the committee's calls. Highlighting the gravity of the situation, Orogbu asserted that these corporations, despite benefiting significantly from Nigeria, have disrespected the nation by not cooperating with parliamentary inquiries.

Mr. Wondi Ndanusa, representing the Central Bank of Nigeria (CBN) governor, voiced support for the bill but suggested that penalties should be persuasive rather than punitive. He also proposed that CSR regulation should fall under the Corporate Affairs Commission's jurisdiction.

Mr. Bala Wuoir, from the Oil Producers Trade Section, expressed concerns about the financial burden on oil companies, which are already mandated to contribute 3% of their profits to the Niger Delta Development Commission (NDDC) under the Petroleum Industry Act (PIA). He argued for their exemption from the bill.

The discussion also revealed a rift between the House Committee and the Manufacturers Association of Nigeria (MAN). While the House Committee insists on government regulation of CSR to ensure corporate accountability to host communities, MAN believes CSR should remain voluntary and not be enforced by law. MAN's representative, Dr. Kamarudeen Adigun, argued that making CSR mandatory would be counterproductive and should instead be a moral obligation.

Speaker of the House, Rt. Hon. Tajudeen Abbas, opened the hearing by underscoring the importance of CSR as a social duty to stakeholders and communities, noting the current lack of coordination and documentation. Chairman Hon. Prof. Lilian Orogbo echoed this sentiment, advocating for a comprehensive CSR framework to foster sustainable development and a more equitable society.

Despite resistance, the House Committee remains determined to pass the bill into law, ensuring international best practices and protecting both companies and citizens in Nigeria.

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