12th September 2024
Regulating Corporate Philanthropy Through the Corporate Social Responsibility Bill, 2023
The Corporate Social Responsibility (CSR) Bill, 2023, introduces mandatory CSR requirements for Nigerian companies that meet specific financial thresholds. If passed, companies will need to establish a CSR committee, notify the Corporate Affairs Commission (CAC), and allocate 2-5% of their average net profits over three years to CSR initiatives. Non-compliance could result in fines or imprisonment.
The Bill may overlap with existing CSR obligations under the Petroleum Industry Act (PIA) 2021, raising concerns about double compliance. Lawmakers are encouraged to consider exemptions to prevent undue burdens on businesses. Companies should reassess their CSR strategies to prepare for these potential legal changes.
For more information, contact TEMPLARS Partner, Emmanuel Gbahabo, and Associate, Ifeoluwa Ibiyemi.
