The Honourable Member representating Abeokuta North, Obafemi-owode and Odeda federal constituency in the House of Representatives and Chairman, House Standing Committee on Justice, Hon. Olumide Babatunde Osoba in an interview with National Assembly New Media Forum journalists shades light on the CSR Bill grey areas in his office yesterday, 25th June,2024 @ National Assembly.
QUEST: Most of the companies were seeking for exception during the public hearing of the bill, not ready to key into the innovation introduced by the bill, citing already over burdened with CSR and other taxes, what is the plan to ensure that those organizations are well enlightened on the CSR Bill.
Respond: The bill doesn’t tax companies, when you say you are taxing companies, it means government is collecting money. The bill states clearly that within themselves, they will use that money and do corporate social Responsibility. Government is not taking any money from them but they will show what they have done with it. then that commission will act as a bridge between them, the community and government to check if what they have done is commensurate with the percentage they are expected to put into Corporate Social Responsibility in their host community-the communities they are extracting solid minerals and getting revenue from. So the bill doesn’t say they are going to be taxed , they are going to use a percentage of the revenue generated for CSR and show the commission what they have done with CSR allocation when the bill becomes an act. A board will be inaugurated, and their CSR will be verifiable project. This is the new best CSR practices across the world against the persuasive and voluntary CSR practice here. is now going to be mandatory with the passage and subsequent assent of the bill by President.
The world is evolving, countries are now making it mandatory, we are not going to wait till ten years time when the countries would have made it mandatory for ten years. The time is now. The bill does not by any means seek double taxation on companies than the existing one, we are not collecting any money from them, we are just telling them to use this fund for the purpose for which it is set out for, use this percentage and show that you have done CRS with it for the community host the companies.
The bill states clearly that the companies involved are going to have a board that is constituted within the companies which will streamline CSR activities in line with host communities needs . They came and the were talking about engaging host communities, this bill expects anybody that is going to perform CSR activities in any community to have rigorous engagement with host communities to know what their needs are.
Question 2 Some representative who spoke differently for their organization, claimed they are already doing a lot in fulfilment of their company corporatee social responsibilities to their host community, what is the ga
Ans: Let me show you an example, if they are 100 companies and 6 companies are doing CSR, should we leave 94 companies because 6 are performing? Besiders, the fact is that this 6 companies should submit what they have done or are doing so as to be given clean bill of health. Should we leave this 96 companies because they said that they have done? We want everybody inside captured to be doing the right thing. I told everybody clearly, if you have done the needful all you need to do is to show the evidence of what you have done and you will be given a clean bill of health and you don’t need to do anything new. It is very simple.
Question 3 There is an argument between what CAC is doing and what the bill intend to achieve via the commission when this bill scales through. Can you please educate Nigerians on the above?
Answer : The thing is that what CAC is doing is a fraction, that line of CSR is very vague. This particular bill wants it to be clear and monitored properly. Everybody says he is doing CSR but whenever they do the acclaimed CSR, do they take back any evidence of the CRS to CAC ? The answer is no, they don’t.
The truth is that we need checks and balances, a gate keeper. Get all the documents submitted, we will now have an on field inspectors to go and inspect what has been done. This is just about transparency and accountability which looks like what they don’t want because they know they can always tell CAC they have spent 100million and send pictures with out inspection.
Question 4.Honourabke sir, In the time past, companies determine what is to done and execute it but now, the Host-communities will determine what they want the companies to do for them. However, there are fears that the process can be hijacked by politicians who will determine what the companies will do in that community, what is your thoughts on this sir?
Answer := I think anyone that came there today needs to go and get the bill and study it. The bill is very clear. It states that the companies will constitute a board to handle their CSR. So companies that have a board, part of their board will form a board of CSR, politicians will now hijack the board? That is alien to me, your board is going to sit down decide with the communities what they need and you come to an agreement that this is what this community needs and wants . I will give you an example, you have Quarries and they destroyed the roads in their locations and they get away with it , they are raking in a lot of money yet all the roads are in bad shape, the communities don’t even have pipe borne water , no primary heath centres, the children are learning under trees yet you are raking in 100million, 200million every month from your current services. That is what we want to stop. All these big companies saying we have done this, we have already done that not a problem. What about all those companies who are not engaging at all, so we should leave them alone because you are doing CSR ? Show us the evidence then you can move on, those ones that are not doing it, we will make sure that is mandatory and they do it.
Question 5 How is the parliament going to follow up to ensure implementation if the bill becomes an act because there are lots of laws on this CSR and implementation always an issue?
Answer : Let’s get it clear all the acts you are talking about may just haver two, three lines or a paragraph for CSR and it is very vague . When a law is vague people walk around it . Now when this bill becomes an act, all those chapters in all those acts that are vague will be clear, now it is this act that is the main one . So we are going to take from those other ones to this one to make this one the holistic CSR act. So all those ones are not the issue. It is this one that is going to safeguard CSR in Nigeria .
Earlier,the leader of the House of Representatives, Professor Julius Ihonvbere, who represented the speaker, RT. Hon, Tajudeen Abbas,PhD, frowned at the lack lustre attitude of most Stakeholders towards invitation and summons made to them by the parliament through their various committees.
Further reaffirming his position added that parliament will deal with those recalcitrant corporate bodies and individuals who flout National Assembly invitations and summons.
“It takes time, energy to put up a public hearing .When you receive NASS invitation it has severe consequences to turn it down” he said
“They think we can’t do anything. CSR is important for Oil, Mining, Govt agencies etc . How will they help, we are concerned. Where are the directors? It shows disregard. They don’t care about the people. This nonsense must stop, he frowned.
According to him, “Government officials are not here too. We can’t continue like this. We watched when Nigeria was run aground. National Assembly takes full exception to the reckless attitude of not obeying it’s invitation .I will personally report to speaker and those responsible will be sanctioned”
However, the speaker in his remarks, explained that the Bill was an important piece of proposed legislation that will guide corporate social responsibility in the country.
As one of the legislative processes to guide CSR, the speaker added that the bill provides guidelines and regulations. Optimistic that the bill when it becomes law will be of positive impact on the people and urged stakeholders to express their views and make useful contributions that will shape the Bill.
The Chairman of the House committee on Corporate social responsibility, CSR, Professor Lilian Orogbu expressing concern over the poor attendance during her opening remarks, threatened to invoke the relevant section of the constitution to compel attendance or sanction by issuing a warrant of arrest on erring companies or individuals.
Maintained that the corporate social responsibility Bill will impact positively on Nigerians after a long advocate for a robust framework for corporate social responsibility, observed that there have been clear gaps and inconsistencies in CSR governance in the country. Says the Bill will define what is real business conduct and what is Corporate Social Responsibility, providing monitoring and enforcement in CSR activities.
She added that the Bill will further provide opportunities for all communities to voice their opinions, just in the same way ,she urged stakeholders present at the public hearing to make meaningful contributions to the final making of the Bill.
“As parliament it will be constructive. Let it reflect the aspirations of Nigeria. Let’s usher in a responsible work order and bring a just and equitable society for all” Prof Orogbu added
Revealing the menace of oil and gas companies in the south/ south zone of the country, the scenario of the mining companies in the south east and some areas in the North with non compliance to full CSR to environment and host Communities with numerous petitions currently before the committee prompted the CSR bill which public hearing we are. Prof. Orobgu lamented.
She noted that the committee took exception to the recalcitrant attitude of the telecommunications companies, especially the service providers and enjoins the telecom regulatory agency -NCC to use their mandate as regulatory agency on them to efforce compliance on invitation from the parliament.
“Telecoms say we can’t invite. They claim they are in court. They say govt does not fund them so they can’t come yet raking in billion as revenue upon the mandate of the Parliament to operate in the country”.
“To flout Invitation of parliament is an offence. They take so much from us. If you feel responsible, you must come to Parliaments and defend yourself. We want this to end, going forward. We make laws for you to operate here and yet you say you cannot appear before us, we won’t accept it. If they disobey parliament, it doesn’t show they are responsible.
Meanwhile, some stakeholders has risen concern and pitfalls on the Bill.
The Central Bank of Nigeria, CBN, Nigeria Communications Commission,NCC, Manufacturers Association of Nigeria,MAN, whose positions were in unison, said the proposed Bill was a duplication of what is currently in legislative instruments been implemented by Corporate Affairs Commission (CAC).
According to them, the activities of corporate social responsibility, CSR, was already a provision in the companies and allied matters Act, CAMA, and superintendent by the Corporate Affairs commission. Hence faulted the Bill on proposing another regulatory body or commission with same responsibility.
They also faulted the imprisonment penalty and five percent charge for CSR on annual profit of a preceding year . In its view, the CBN, representative , Phillip Ndanusa, revealed that CSR contributions in most countries was 2%
Said the concept of corporate social responsibility should be persuasive and not punitive and as such, there was no need to imprison any defaulters, rather they should be persuaded, because it was more or less a social and philanthropic efforts of corporate bodies who are doing business, paying taxies and levies to government , wether they make profit or not.
Others who made contributions, like the OPTS, urged the parliament to exempt, the oil and gas operating companies since they are already committing and contributing over 10% in their various CSR activities.They cited their compulsory contributions as provided by the Petroleum Industry Act, PIA, to the Host Community Fund, contributions to the NDDC, and others, and therefore called for exemption
The Financial reporting council, and the Association of Telecoms Operators, however, submitted their position documents. They were not properly represented by executives of the organisation and therefore didn’t make oral presentation as well as the representative of the federal mining ministry.
Supporting the bill in it entirety, a group who spoke as concerned citizen said there has never been a wholesale legislation on corporate social responsibility in Nigeria, except policies and Internal programs, drawn up by management of some corporate bodies to assist host communities, especially when there are hostilities, or disputes, and, or, when the host communities youths go up in arms against the companies
According to the Concerned citizens group, government has already provided incentives for corporate bodies as a result of the CSR activities they carry out, adding that the levy or charge on the Bill is not an additional levy on tax:
CSR, according to the group is mandatory because there are a lot of abuses going on. “They only take pictures, nothing to show”
The concerned citizens group argued that the petroleum industry Act was a total different concept, and law. Maintained Nigeria does not have a wholesale law on Corporate Social Responsibility -CSR , except this bill and we urged the parliament to enact this new law that will govern CSR activities in the country.
