The House of Representatives has passed for a second reading a bill seeking to amend the Financial Reporting Council of Nigeria to prescribe corporate social responsibility (CSR) for companies operating in the country.
The bill was referred to the House Committee on Commerce for further legislative action.
The proposed amendment seeks to promote corporate good governance through the allocation of resources to execute corporate social responsibility of companies.
The member representing Ilorin East/South federal constituency of Kwara State, Hon Abubakar Adamu Kannike, while leading the debate, explained that companies that have thriving business relationship within the country should contribute to the social benefits of citizens and the environment.
The lawmaker also noted that CSR still remains at a developmental stage in Nigeria and emphasised the need for the inclusion in the relevant act to guide standards and practices by companies.
According to him, with the passage of the bill into law, there will be inclusion of CSR as part of the governance of a company and there would be complete transparency in the running of its affairs.
Specifically, the Bill seeks to amend sections 8 (1) of the Financial Reporting Council Act 2011 that states that the Council shall monitor compliance with reporting requirements specified in the adopted corporate governance.
Again Section 49 (h) of the Act that is proposed for amendment states that there would be a mandatory percentage of CSR responsibility requirement by companies that earned an average of N50,000,000 and above in profits in three succeeding years.
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