Tier-1 lenders in Africa’s most populous nation, are putting in more efforts towards improving their host communities as the cumulative donations of four big banks that have released their financial scorecards for the period ended December 31, 2018, grew 11 percent.
The aggregate donations made by Access Bank, United Bank for Africa, Zenith Bank and Guaranty Trust Bank in FY 2018 stood at N5.42 billion, N540 million or 11 percent higher than N4.88 billion reported in the previous year.
Corporate social responsibility or corporate citizenship is one of the key elements in business as it describes companies’ efforts towards improving their operating environment socially, economically and environmentally.
Efforts can range from donating money to non-profit making organizations to implementing environmentally-friendly policies in their respective work place.
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UBA, Zenith and GTB reported year-on-year increase in their donations to community development in FY 2018 except Access that posted 34 percent decline.
Donations made by UBA, Zenith and GTB notched up by 26 percent, 17 percent and 7 percent respectively in FY 2018.
Nigeria’s biggest lender by asset, Zenith Bank up donations and charitable gifts to the society to N3.06 billion in FY 2018, representing N454 million or 26 percent increase over N2.61 billion reported the year before.
Majority of Zenith’s donation, which is about 51 percent, were dissipated to States’ Security Trust Fund, while Nigerian Academy of Neurological Surgeons received the least donation of N10 million from the bank.
GTB raised its donations by N61 million or 7.04 percent to N928 million in FY 2018 compared with N867 million in the prior year. The bank directed its donations across four sectors namely arts, community development, education and environment.
A large chunk of the bank’s donations were directed to Financial Inclusion (N295m), Principals’ Cup (N130m) and Africa Centre Development (N75m).
Pan-African financial institution, UBA, up its donations by 26 percent or N261 million to N1.03 billion in FY 2018 compared with N832 million reported in the previous year.
About 99 percent of the bank’s donations in the review period were directed to developmental projects in Nigeria, with Financial Inclusion and Public Enlightenment project receiving the largest share of N400 million. The remaining 1 percent was committed to other projects in Africa.
Access Bank, which in no time will become Africa’s largest lender by customer base, lessen its donations by N191 million or 34 percent to N376 million in FY 2018 compared with N567 million posted in FY 2017.
About 53 percent of Access’s donations went to Financial Inclusion Project (N100m) and Lagos State Security Trust Fund (N100m), while contribution to Womanpreneur Business Workshop got the least share of N619, 500 in the review period.
ISRAEL ODUBOLA
