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Addressing Regulatory Deficiencies: Enhancing Corporate Social Responsibility in Nigeria’s Extractive Industry through Local Informal Institutions

Lookup NU author(s): Dr Godswill AgbaitoroORCiD

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0).

Abstract

The paper emphasises the importance of incorporating local informal institutions into Nigeria's corporate social responsibility (CSR) frameworks, particularly in regions like the Niger Delta. It underscores that recognising these community-based organisations is vital for enhancing the legitimacy and effectiveness of CSR initiatives. By fostering collaborative partnerships and establishing mechanisms for engagement, companies can better align their CSR activities with the needs and realities of local communities. The study advocates legislative reforms to make CSR a mandatory requirement in Nigerian company law, obliging corporate directors to recognise and collaborate with informal institutions. Additionally, it proposes expanding the scope of corporate fiduciary duty to encompass responsibilities towards local communities and environmental management. This change would enable companies to act as drivers of positive change, benefiting both their business interests and the well-being of local populations. Furthermore, the paper highlights the potential of Impact and Benefit Agreements (IBAs) to establish frameworks for social inclusion and to encourage the active participation of local stakeholders in corporate decision-making.

Publication metadata

Author(s): Nwoke U, Agbaitoro G, Tioluwani C

Publication type: Article

Publication status: Published

Journal: Journal of Sustainable Development Law and Policy

Year: 2026

Volume: 17

Issue: 4

Pages: 194-229

Print publication date: 21/08/2026

Online publication date: 15/04/2026

Acceptance date: 14/01/2026

Date deposited: 08/09/2026

ISSN (print): 2467-8406

ISSN (electronic): 2467-8392

Publisher: OGEES Institute

URL: https://doi.org/10.4314/jsdlp.v17i4.7

DOI: 10.4314/jsdlp.v17i4.7

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