Banks’ CSR Spending Jumps 200% On Covid Pandemic Containment
The compulsion to curb the spread of the Covid-19 pandemic in the communities and environment of their operations grew the Corporate Social Responsibility (CSR) spending of Nine banks to N16.48 billion in 2020 indicating a 200 per cent rise, an investigation by InsideBusinessNG has revealed.
In 2019, the nine banks reported N5.5 billion CSR spending.
These contributions came when global economy was facing severe pressure from global oil price plunge and closure of business activities for some months.
Although CSR spending always generate criticisms at banks annual meeting of shareholders because larger percentage most time, are not justified as it goes to friends and associates.
Five of the banks including United Bank for Africa (UBA), Access Bank Plc, Zenith Bank Plc, Guaranty Trust Bank Plc (GTBank) and First Bank of Nigeria Limited crossed N1 billion mark in CSR spending for the period.
Those below the N1billion mark are Stanbic IBTC Holdings Plc, FCMB Holdings Plc, Fidelity Bank plc and Union Bank of Nigeria Plc.
InsideBusinessNG findings show that the following lenders donated donated to CBN to fight the pandemic.
GTBank spent N1 billion, United Bank for Africa (N1 billion), Zenith Bank (N1 billion), Access Bank (N1 billion), First Bank (N1 billion), Union Bank (N250 million), Fidelity Bank (N250 million), and Stanbic IBTC Bank (N250 million)
Recall that CBN had informed the private companies and individuals wishing to make voluntary donations towards the fight against Coronavirus to do so via COVID-19 Relief Fund Account.
In total for the Year 2020, UBA with N5.1billion CSR spending, indicating 577.95 per cent increase over N752.82 million reported in 2019 leads others in CSR expenditure for the year.
The pan-African bank announced N5 billion ($14 million) COVID-19 relief support across its countries of operation in Africa.
According to the bank, “The donation will provide significant and much needed support to Nigeria and 19 other African countries, by supplying relief materials, critical care facilities, and financial support to Governments.
“The UBA support programme will be allocated as follows:N1 billion ($2.8 million) to Lagos State Government in Nigeria; N500 million ($1.4 million) to Nigeria’s Federal Capital Territory, Abuja; N1 billion ($2.8 million) to the remaining 35 states in Nigeria; N1.5 billion ($4.2 million) to UBA’s presence countries in Africa and Free Telemedicine Call Centre facility.”
Chairman, UBA, Tony Elumelu, had stated ‘This is a time when we must all play our part. This global pandemic must bring citizens, governments and business leaders together – and quickly.
“As we see a rapidly increasing number of cases of the coronavirus in Nigeria and Africa, the private sector has to work hand in hand with various Governments, in stemming the spread of the global pandemic.”
COVID-19 charity donations to the Central Bank of Nigeria (CBN) turned into a stiff competition as banks donate billions of Naira to look stronger than the others, sources expressed.
Trailing UBA was Access bank with N2.6billion CSR donations and gifts in 2020, 615.46 per cent increase over N363.9million in 2019.
Top on the list of Access bank donation and charitable gits was N1billion and N778.97million contribution towards the COVID-19 Relief Fund and contribution towards the fight against COVID-19 including supplies for the Isolation Center in Rivers in 2020 respectively.
With N1billion contribution to Coalition Against COVID (CACOVID), Zenith Bank in 2020 reported N3.29billion donation and charitable gifts in 2020, 20.4 per cent increase from N2.73billion reported in 2019.
GTBank’s donations and charitable gifts was N1.87bilion in 2020 from N505.4million in 2019 with Coalition Against COVID (CACOVID) contributing 95 per cent or N1.79billion, while First Bank of Nigeria Limited donated N1billion in 2020 and nothing in prior year.
From the list of Teir-2 banks, Stanbic IBTC Holdings spent N981.69million in 2020, 54.4 per cent increase from N635.98million in 2019.
According to the bank, “The Group and Company made contributions to charitable and non – political organizations amounting to N663.4 million and N326.9 million respectively (Dec 2019: Group – N318.29 million; Company – N309.08 million) during the year.”
From its 2020 audited results for period ended December 31, 2020, FCMB Holdings reported N709.47million donation, 137 per cent increase over N299.4million in 2019.
In addition, Fidelity bank’s donations and charitable contributions was N535.6million in 2020 from N165million in 2019, while Union Bank of Nigeria donations and charitable rose by 731.5 per cent to N393.05million in 2020 from N47.27millioon in 2019.
A shareholder who pleaded anonymity expressed that banks donation and charitable gifts are not always justified, but noted that the intervention during the pandemic was for mankind survival.
He expressed reservations about other CSR donations, “If you check some of these banks donation and charitable gifts, it sometimes goes to friends and associates.
“However, society, where these banks operate, are ignored and interesting part is that these funds belongs to shareholders who have no say in the way the funds are being donated.
“We have raised these issues concerning banks’ ridiculous donations in the past, yet nothing has changed.”
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