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The House of Representatives Committee on Corporate Social Responsibility (CSR) has resolved to sanction MTN, Airtel, and other companies for failing to fulfill their CSR obligations. The committee also plans to enact laws to penalize offenders.
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During a public hearing in Abuja on Tuesday, Rep. Oby Orogbu, the Chairman of the Committee on CSR, emphasized the need for strict adherence to CSR practices. The hearing focused on a bill to regulate corporate social responsibility in Nigeria.
Orogbu issued a final warning to MTN and Airtel to honor the committee’s invitation or face arrest warrants. She noted that some companies operating in the country have repeatedly violated the law, necessitating punitive measures.
Expressing frustration, Orogbu criticized the conduct of the National Communications Commission (NCC), MTN, and Airtel for ignoring multiple invitations from the committee. She stressed the importance of compliance with Section 89, 8 of the Constitution, which mandates companies to appear before parliament when summoned.
“MTN and Airtel take so much from our nation and feel too big to appear before the parliament. This is unacceptable. We gave them the power to operate in Nigeria, and they must honor parliamentary invitations,” Orogbu stated.
She added, “If you feel responsible, you should appear before the parliament. We want you to be accountable to the nation you operate in.”
Mr. Wondi Ndanusa, representing the Governor of the Central Bank of Nigeria (CBN), expressed support for the bill but raised concerns about the proposed penalty of imprisonment for defaulting companies. He suggested that penalties should be more persuasive and highlighted the financial burdens many companies face.
Mr. Bala Wuoir, representing the Oil Producers Trade Section, voiced concerns about the additional financial obligations the bill would impose on oil companies, given their existing contributions to the Niger Delta Development Commission (NDDC).
The hearing also revealed differing opinions between the House Committee and the Manufacturers Association of Nigeria (MAN). While the House Committee insisted on regulating CSR to protect host communities, MAN argued that CSR should remain optional and be a moral obligation rather than a regulatory mandate.
Speaker of the House, Rt. Hon. Tajudeen Abbas, noted the importance of CSR as a social obligation that corporate organizations owe to their stakeholders and communities. He highlighted the need for better coordination and documentation of CSR practices.
Chairman Orogbu advocated for a comprehensive CSR framework, emphasizing its potential to foster sustainable development and create a more equitable society. She assured that the House is committed to passing the bill into law, ensuring international best practices that protect both companies and citizens.
The committee also lamented the lack of social responsibility demonstrated by many telecommunications companies in Nigeria, blaming the NCC for their operational lapses.
As the House Committee prepares to pass the CSR bill into law, it aims to set a robust standard for corporate responsibility that aligns with global best practices, ensuring that companies contribute meaningfully to the communities they operate in.
