Corporate social responsibility, multinational corporations and the law in Nigeria: controlling multinationals in host states

Copyright @ School of Oriental and African Studies.There is a general perception that home jurisdictions in vulnerable areas are powerless when it comes to the control of multinational corporations. While this assertion is largely correct, this article argues that there cannot be effective control of multinational corporations (“MNCs”) at international, regional or private level without the corresponding development of an effective minimum institutional framework at the domestic level. This article examines the Nigerian legal framework for the regulation of MNCs with a view to underlining the weaknesses in the domestic forum, and also examines the prospects for enhancing the capacity of a domestic framework for the effective control of MNCs. The article argues that, while corporate social responsibility practice by MNCs is becoming well entrenched, this development cannot replace the need for effective host state regulation. The article focuses on company law and human rights law and suggests viable possibilities within the local context that may enhance the control of MNCs

Water and electricity in Nigeria

The report reviews privatisation solutions promoted by the World Bank and the IFC, and critical responses to them

A Critical Examination of the Multinational Companies Anti-corruption Policy in Nigeria

In contemporary enterprise and organisational culture, many companies are increasingly willing to increase their profits and to gain competitive advantages through indulgence in bribery, corruption, money laundering and other anti-social practices that shows little regard for social obligations and even laws. Companies cemented their social relations by claims of socially responsible and of ethical conduct, but the evidence in practice proves otherwise. The bourgeoning corporate social responsibility literature rarely examines predatory practices of MNCs even though the practices affect a variety of stakeholders. This paper draws attention to the gaps between corporate anti-corruption policy and acts. The paper used publicly available evidence to provide case studies to show that companies engaged in bribery, corruption and money laundering as against their claims of responsible social conduct. The paper argued that MNCs have used the political elite in developing countries to seek to advance their global earnings and competitive advantages by offering bribes and other inducements to secure government contracts in Nigeria. It also encourages reflections on endemic corrupt practices and offers some suggestions for reform

Nigeria’ Power Sector: Analysis of Productivity

This study analyzes the productivity change in Nigeria’s power sector from 2004-2008, Applying the Malmquist index with the input technological bias. The results show that on average, the Nigerian power sector becomes both more efficient and experience technological improvements. Furthermore, the assumption of Hicks neutral technological change is not suitable and therefore the traditional growth accounting method is not appropriate for analyzing changes in productivity for Nigeria power sector. Policy implications are derived.Power, Nigeria; productivity, technological change, policy implications.

Employee Participation in Budgeting and Effective Budgetary Control a Tool for Enhancing Organizational Performance.

Organizational performance is a major issue of concern to stakeholders in any business. Stakeholders are of keen interest on the positive performance of the business enterprise they have interest in. Boosting performance however does not start during regular activities of the organization, but before the regular activities commence through budgeting and during the regular business activities of the organization towards the attainment of the organizational objectives. This research dealt with the impact of employee participation in budgeting as well as the adoption of effective budgetary control in the improvement of organizational performance of medium and large scale enterprises in Nigeria. The data used for this research was collected through the administration of research questionnaire to employees of medium and large scale enterprises in Nigeria. The research hypotheses were tested using regression analysis and correlation. At the end of the research, it was found out that employee participation and in budgeting as well as effective budgetary control are essential tools for the enhancement of organizational performance. The research therefore recommends that medium and large scale companies should adopt the bottom up budgeting system by allowing employees participate in budget formation, as well as the use of periodic budgetary control method

Money Laundering and Trans-organised Financial Crime in Nigeria: Collaboration of the Local and Foreign Capitalist Elites

Nigeria loses US$600 million annually to money laundering. Between the mid-1980s and 1999, Nigeria lost US$100billion to money laundering. In the so acclaimed democratic era, between 2001 and 2004, the country lost an estimated US$25billion to money laundering. Nigerians who specialise in international money transfer have also extorted about US$357,142,857 from overseas victims. However, such illegal inflow and outflow of huge amount of money that has contributed to the impoverishment of the Nigerian economy cannot be easily perpetrated, without the cooperation, collaboration or at the very least, connivance of the professionals, particularly accountants. Yet, the various statutory provisions, companies’ and professional bodies’ Acts locally and internationally, all combined to place the responsibility on the accountants and auditors to detect and report cases of suspected money laundering and other financial crimes to the regulators. This paper develops theories of money laundering and the professions, particularly accountancy and utilizes archival documents to provide the evidence which suggests the role of the accountants in acting as the advisers and vectors of the ruling elites, politicians, public officials and their multinational corporations and other foreign capitalists’ collaborators in siphoning the collective wealth of Nigeria into the individual private bank accounts abroad. The paper further provides the evidence, which suggests that, the successive Nigerian governments, the ‘good governance’, ‘accountability’ and ‘transparency’-preaching Western economic powers, and the ‘ethical conduct’ and ‘transparency’-preaching accountancy bodies (local and foreign) have been reluctant to investigate or prosecute the culprits and erring members within their borders or associations in the face of the evidence of these local and trans-organized financial crimes in Nigeria

Digging deep the oil world: corporate liability and environmental justice strategies

The impacts provoked by the expanding oil industry encompass environmental destruction, health impacts and violations of human rights. The increasing contamination jeopardizes safe conditions of life and destroys means of livelihood of vulnerable communities and of those relying on healthy ecosystems. Local communities, feeling that they are simply sacrificed to the oil industry, see themselves involved in social conflict. They are experiencing forms of environmental discrimination and might even face criminalisation of the protest when they stand up to defend their rights promoting the chilly effect on others who need and want to defend themselves and the environment. In fact, the number of lawsuits demanding justice for environmental, social, economical and cultural damages provoked by oil companies are increasing as well as their media visibility. Yet most outcomes are not satisfactory in tackling impacted communities claims for justice. This paper describes the most recent trends regarding oil corporations’ responsibilities and use of procedural justice by civil society through the review of emblematic legal cases

Commodities and Linkages: Industrialisation in Sub-Saharan Africa

In a complementary Discussion Paper (MMCP DP 12 2011) we set out the reasons why we believe that there is extensive scope for linkage development into and out of SSA’s commodities sectors. In this Discussion Paper, we present the findings of our detailed empirical enquiry into the determinants of the breadth and depth of linkages in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber). We conclude from this detailed research that the extent of linkages varies as a consequence of four factors which intrinsically affect their progress – the passage of time, the complexity of the sector and the level of capabilities in the domestic economy. However, beyond this we identify three sets of related factors which determined the nature and pace of linkage development. The first is the structure of ownership, both in lead commodity producing firms and in their suppliers and domestic customers. The second is the nature and quality of both hard infrastructure (for example, roads and ports) and soft infrastructure (for example, the efficiency of customs clearance). The third is the availability of skills and the structure and orientation of the National System of Innovation in the domestic economy. The fourth, and overwhelmingly important contextual factor is policy. This reflects policy towards the commodity sector itself, and policy which affects the three contextual drivers, namely ownership, infrastructure and capabilities. As a result of this comparative analysis we provided an explanation of why linkage development was progressive in some economies (such as Botswana) and regressive in others (such as Tanzania). This cluster of factors also explains why the breadth and depth of linkages is relative advanced in some countries (such as South Africa), and at a very nascent stage in other countries (such as Angola)