Deposit Money Banks and Corporate Social Responsibility in Nigeria: Sectoral Patterns and Trends

Abstract

This study examines trends and patterns of Deposit Money Banks’ Corporate Social Responsibility (CSR) to various socio-economic sectors in Nigeria. Using a dataset of 10 years, 2004-2014, and based on simple descriptive analysis, the study demonstrates that DMBs in Nigeria spend more on social empowerment than in more productive areas that would better the livelihood of the citizenry. DMBs’ preferences for social sectors are largely informed by their drive to protect their interest defined in terms of profit. However, lack of a policy guiding and regulating CSR activities generally in Nigeria is responsible for DMBs biased CSR activities and for lack of diversification. The study, therefore, recommends that Nigeria should design a CSR policy framework as a guiding principle for all CSR activities in the country. It is only through this that the corporate world would be tamed to invest their CSR in more productive sectors that would better the livelihood of their host communities and the country at large.