The Institute of Chartered Secretaries and Administrators of Nigeria and the Securities and Exchange Commission have called for the mandatory implementation of Corporate Social Responsibility by Nigerian businesses to improve corporate governance, promote sustainability, and contribute to the development of the Nigerian economy.
In her address at the ICSAN National Conference held in Lagos recently, the President of ICSAN, Funmi Ekundayo, stressed the importance of integrating CSR into the business model of every Nigerian company.
She stated, “It is imperative that Nigerian businesses go beyond profits and embrace CSR as a fundamental part of their corporate strategy. Businesses must demonstrate their commitment to responsible practices, not just for the benefit of their shareholders, but for the society at large.”
Ekundayo highlighted that CSR should no longer be viewed as a voluntary exercise but as a mandatory commitment that all companies must adhere to, particularly in the areas of education, healthcare, and environmental sustainability.
She added, “Companies should recognize the impact they have on society and take active steps to support community development, thereby building trust with consumers and stakeholders.”
Additionally, a Director at the Securities and Exchange Commission, Hafsat Rufai, also weighed in on the discussion, reiterating the SEC’s position on CSR compliance for all publicly listed companies.
Rufai emphasized the need for regulatory measures that will ensure businesses align with global CSR standards.
“Corporate Social Responsibility is no longer optional; it is a necessity for sustainable business practices,” said Rufai.
Rufai explained that the SEC is working on frameworks that will make it mandatory for listed companies to disclose their CSR activities as part of their annual reports. “The SEC will continue to work closely with key stakeholders to ensure that CSR becomes an integral part of our capital market,” he added.
Rufai further stressed that such initiatives would enhance the credibility of Nigeria’s financial markets, making them more attractive to both local and international investors. He also proposed that Nigerian companies dedicate a minimum of 2.5 per cent of their annual profits towards CSR projects, aligning with best practices in other global markets.
