To improve corporate governance, promote sustainability, and contribute to the development of the Nigerian economy, the Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN and the Securities and Exchange Commission, SEC have called for the mandatory implementation of Corporate Social Responsibility by Nigerian businesses.

In her address at the ICSAN National Conference in Lagos, ICSAN President and Council Chairman, Funmi Ekundayo, noted the importance of integrating CSR into the business model of every Nigerian company.

Ekundayo who is ICSAN’s first female President said it is imperative that Nigerian businesses go beyond profits and embrace CSR as a fundamental part of their corporate strategy.

According  to her, Businesses must demonstrate their commitment to responsible practices, not just for the benefit of their shareholders, but for the society at large.

She highlighted that CSR should no longer be viewed as a voluntary exercise but as a mandatory commitment that all companies must adhere to, particularly in the areas of education, healthcare, and environmental sustainability.

In her words, Companies should recognise the impact they have on society and take active steps to support community development, thereby building trust with consumers and stakeholders.

Additionally, a Director at the Securities and Exchange Commission, Hafsat Rufai, also reiterated the SEC’s position on CSR compliance for all publicly listed companies.

Rufai emphasised the need for regulatory measures that will ensure businesses align with global CSR standards.

According to her, Corporate Social Responsibility is no longer optional; it is a necessity for sustainable business practices.

Rufai explained that the SEC is working on frameworks that will make it mandatory for listed companies to disclose their CSR activities as part of their annual reports.

In her words, the SEC will continue to work closely with key stakeholders to ensure that CSR becomes an integral part of capital market.

Rufai further stressed that such initiatives would enhance the credibility of Nigeria’s financial markets, making them more attractive to both local and international investors.

She also proposed that Nigerian companies dedicate a minimum of 2.5 per cent of their annual profits towards CSR projects, aligning with best practices in other global markets.