Nigeria’s House of Representatives Committee on Corporate Social Responsibility (CSR) has warned telecommunications giants MTN and Airtel sternly for repeatedly ignoring its invitations.
During a public hearing in Abuja on a bill aimed at regulating corporate social responsibility in Nigeria, Rep. Oby Orogbu, the Committee’s Chairman, emphasised the companies’ failure to comply with several invitations to discuss their CSR initiatives.
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Threat of Sanctions against MTN, Airtel
Orogbu, expressing displeasure at the non-compliance, stated that the Committee is prepared to invoke its powers by issuing a warrant of arrest if MTN and Airtel disregard their invitations.
“Section 89, 8 of the Constitution mandates individual companies as invited to make themselves available to parliament, but they break the law,” she declared. She emphasised the significant benefits these companies derive from operating in Nigeria and criticised their reluctance to appear before the parliament as a sign of disrespect.
Despite operating nationwide, both companies have failed to engage with the legislative body that granted them the authority to operate in Nigeria. Orogbu underscored the importance of accountability, urging the telecom operators to demonstrate their responsibility by participating in the legislative process. “If you feel responsible, you should appear before the parliament. We want you to be responsible and accountable,” she asserted.
Debate on CSR Bill
The public hearing also featured diverse reactions to the proposed CSR bill, which aims to impose sanctions on companies defaulting on their CSR obligations. The bill is intended to ensure that companies operating in Nigeria contribute meaningfully to social development through corporate social responsibility initiatives.
However, some stakeholders raised concerns about the proposed penalties. Mr Wondi Ndanusa, representing the Central Bank of Nigeria, cautioned against punitive measures like imprisonment for defaulting companies. He argued that penalties should be more persuasive, considering the numerous financial burdens companies already face. Ndanusa also suggested that the Corporate Affairs Commission should manage the CSR responsibilities to streamline regulatory processes.
Mr. Bala Wuoir, representing the Oil Producers Trade Section, echoed similar concerns. He pointed out that the Petroleum Industry Act (PIA) already requires oil companies to contribute 3% of their profits to the Niger Delta Development Commission (NDDC). Imposing additional CSR obligations, he argued, would be overly burdensome for the oil industry, suggesting that oil companies be exempted from the new bill.
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Next Steps for Compliance
The Committee’s request to MTN and Airtel highlights a critical juncture in Nigeria’s efforts to enforce corporate social responsibility among major corporations. As the CSR bill progresses through legislative review, the balance between encouraging corporate contributions to societal development and imposing fair regulations remains a topic of significant debate.
The coming days will reveal whether the telecom giants will comply with the Committee’s directives or face potential sanctions, including arrest warrants.
The outcome of this legislative push could set a precedent for how Nigeria manages corporate accountability and social contributions, potentially impacting not only the telecom sector but other industries operating within the country.
