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Business News of Thursday, 16 June 2022

Source: www.nairametrics.com

Nigerian banks donate N24.1 billion as Corporate Social Responsibility in 2021

Corporate Social Responsibility Corporate Social Responsibility

Twelve listed commercial banks on the Nigerian stock exchange donated a sum of N22.82 billion as part of corporate social responsibility in 2021, increasing by 27.5% compared to N17.8 billion donations made in the previous year. This is according to data compilations by Nairalytics – the research arm of Nairametrics

Zenith, FBN, and Access Bank made the highest donations in the year under review, accounting for 53.4% of the banks’ CSR donations. A cursory look at their financial reports showed that the contributions were made to charitable and non-political organizations.

Companies are encouraged to contribute part of their revenues as charitable donations in line with their Corporate Social Responsibility, CSR policies. Some of the donations are tax-deductible while others do not qualify for tax deductions. In Nigeria, companies decide how, when and to who they donate their money to.

HIGHEST DONORS

Zenith Bank – N4.45 billion

Zenith Bank made a total charitable donation of N4.45 billion in 2021, representing a 30.3% increase compared to N3.41 billion donated in the previous year. The bank made most of its donations to various Security Trust Funds amounting to N2.78 billion.

Zenith Bank also made donations to academic institutions, some of which include Nigerian Law School (N500 million), University of Lagos (N244 million), St. Saviour School Ikoyi (N20 million) amongst others. The tier-1 bank also contributed to the Ogun State Cooperative Society, and Delta State Principal Cup.

Amongst the sponsorships by the banks include, 2021 Nigerian Fintech Week, 21st Annual Women Conference, 51st Annual ICAN Conference, and 2021 Microsoft Office Secure Productive Enterprise.

FBN Holdings – N4.35 billion

FBN Holdings Plc increased its CSR donations by 90% in 2021 to N4.35 billion from the N2.29 billion contribution made in the previous year. The holding company accounted for 18.1% of the total dispensed CSR donations by listed commercial banks.

It is worth noting that the donations during the year were made by the subsidiaries of the holding company as the non-financial holding company (FBN Holdings) did not make any donation in itself. However, according to the company’s financial statement, its subsidiaries made donations to various worthy causes.

Access Bank – N4.1 billion

Access Bank made CSR donations worth N4.1 billion to charitable causes in the review year, representing a 55.9% increase compared to N2.6 billion contribution made in the previous year. A look at the breakdown of the bank’s donations includes N2 billion to the Police Security Trust Fund, in support of the purchase of police equipment.

The bank also donated N500 million towards the implementation of the Build our Lagos Bank tagged Lagos State Government SME Recovery, N282.1 million for the renovation of police stations. Access Bank also sponsored the 2021 Africa International Film Festival with N150 million.

Some of the other notable contributions recorded in the year include the Nigerian Bar Association (NBA), The Nigerian Economic Summit Group (NESG), National Association of Women Judges Nigeria (NAWJN) amongst others.

GTCo – N2.71 billion

Guaranty Trust Holding Company made CSR donations worth N2.71 billion in 2021, increasing by 44.9% compared to N1.87 billion contributed in the previous year. Its CSR donations accounted for 11.26% of the aggregate for the twelve banks.

According to the bank’s financial statement, it made a donation of N1.5 billion towards equipping Law Enforcement and Security Personnel, N97.49 million towards COVID-19 support. The bank also contributed N782.1 million towards the renovation of police stations.

GTCo also sponsored the basketball sport with N20.58 million. Others include promoting financial literacy and financial inclusion drive in Northern Nigeria, Sports Education Support, University of Lagos hostel renovation etc.

Stanbic IBTC – N1.51 billion

Stanbic IBTC Group donated a sum of N1.39 billion to charitable and non-political organizations, while the company donated N121.9 million, summing up to N1.51 billion in 2021. This is 52.3% higher than the N990 million donated by the company and Group in the previous year.

The Group donated N70.29 million for prostheses and clinical treatment for Together4ALimb beneficiaries, Stanbic IBTC University Scholarship (N24.48 million), Ogun State Security Trust Fund (N10 million), and Police Trust Fund (N1 billion).

Others include renovation of damaged police stations, donations to Abuja disabled people’s home, SOS Social Centre etc.

FCMB – N1.48 billion

FCMB donated a sum of N1.48 billion as corporate social responsibility in 2021, which is 108.8% higher than the N709.47 million contributed in the previous year.

The group made donations worth N1 billion to support the Nigerian police force for the purchase of equipment and N124.18 million for the renovation of police stations. A sum of N120 million was donated to Otunba Tunwase National Paediatric Centre (OTNPC),

Others include Ogun State Security Trust Fund, Ogun State Technological Hub, Lagos State Security Trust Fund, Opebi High School, and sponsorship of the 2021 Annual GRC Conference amongst other charitable gifts.

Bubbling under

UBA – N1.41 billion
Fidelity Bank – N1.38 billion
Union Bank – N1.2 billion
Wema Bank – N724 million
Unity Bank – N671 million
Sterling Bank – N250 million