Writing Sample on Nigerian CSR Legislation

The Nigerian Government’s decision to issue a bill which legislates CSR (Corporate Social Responsibility) on
a national level has been met with a fierce wave of criticism, which has now spread rapidly across the world.
The bill, which was first announced in February 2009, proposes to make obligatory a 3.5% donation of
companies’ profits to the government to spend on general CSR practices, such as “community investment
and philanthropic activities”, as stated by Camilla Flatt, a consultant in Corporate Citizenship at
AfricaPractice in London.

Many are under the impression this new move is a tax scam, an audacious action on the part of the
government as Nigerian companies are already taxed just over 30% on their gross profit. Mallen Baker’s
article, ‘Nigeria joins the “CSR as stealth tax” movement’, suggests that the Nigerian Government is abusing
the notion of CSR to “lever more cash into government coffers”. Others see it as a step backwards, as it is
common belief that CSR initiatives should come from the companies themselves, motivated by incentives as
opposed to being forced by laws.

In actual fact, a recent definition given by the EU states that CSR should consist of “actions that appear to
further some social good, beyond the interests of the firm and that which is required by law”, thus supporting
the idea that compliance is the lowest form of contribution towards CSR. On the other hand, it could be said
that the bill is offering a chance to get the country’s severe infrastructure under greater development. This
includes the improvement (and establishment) of education and health systems, the construction of proper
roads, and the provision of utilities, such as electricity and gas. Why should it matter that the CSR is only on
a level of compliance to begin with, if such good can come from it?

Perhaps the Bill is not the best means by which this goal can be achieved, but a quick review of the facts will
demonstrate that Nigeria has been war-ridden for decades, and only recently has it begun to flourish, notably
through its fast-growing telecommunications sector and other businesses. Despite this recent investment
and consequent increase in wealth, 92% of the 140 million Nigerians are living on less than $2 per day.
These facts are perhaps indicative that there is still a high level of indifference in this country when it comes
to lifting the poor out of the poverty and supporting the entirety of the nation, rather than a select few. In a
country ravaged by corruption and poverty, fixed laws might be the only chance it has of improving the
situation, as national businesses, not charities, have the power to feed the hungry and support the poor. And
although this Bill appears underdeveloped and hasty, every nation must start somewhere. After all, a country
is not revolutionized in a night.