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  • News - North Central - FCT
  • Updated: June 24, 2024

Rep alleges Nigeria loses millions to false CSR claims by multi-nationals

Rep alleges Nigeria loses millions to false CSR claims by mu

The Nigerian government is losing millions of dollars in revenue due to false Corporate Social Responsibility, CSR, claims by multinational companies operating in the country, Prof Obiagili Orogbu, chairperson of the House Committee on CSR has alleged.

This fraudulent practice involves companies claiming expenses for CSR initiatives that they never actually implemented, thereby reducing their tax payments to the government.

"Nigeria is losing millions of dollars in revenue from false CSR claims by companies. This we want to stop with the introduction of the CSR bill," Orogbu said on Channels Television's Sunday Politics. 

"The company income tax act has a provision for expenses incurred in CSR. These donations, goodwill or infrastructural development they did in their communities, they claim it and at the end of the day, the tax they pay to the government is not actually the amount they are supposed to pay."

Her committee, according to the lawmaker, discovered that most companies had not done what they claimed in their audited accounts, which guaranteed them a tax rebate. 

"For instance, a company might claim to have spent N100 million on CSR initiatives, but in reality, they only spent N10 million. This means that they have cheated the government out of the tax they are supposed to pay. Some multinational companies were even found to be operating in secret, making it difficult to track their CSR claims."

Speaking further, Orogbu said the proposed CSR bill aims to stop this fraudulent practice by making CSR mandatory for companies and ensuring that they contribute to the development of their host communities. 

"The bill will also ensure that companies are transparent and accountable in their CSR claims, and that they actually implement the initiatives they claim to have undertaken", she added.

Orogbu called on stakeholders to attend the public hearing on Tuesday to contribute to the bill. Once passed, the bill will help the government focus on other areas of development, she said.

"When finally passed, the bill will make it mandatory for companies to carry out CSR. It will help the government to concentrate on other areas of development," Orogbu added.

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