Integrating Informal Institutions in the Regulation of Effective Corporate Social Responsibility in Nigeria's Extractive Industry

Nigeria's corporate social responsibility (CSR) framework has evolved to tackle various social and environmental issues, especially within the extractive sector. Despite the increasing focus on CSR, environmental degradation and community dissatisfaction persist, highlighting the necessity for genuine engagement with local populations. The paper examines Nigeria’s extractive industry’s CSR ideology, its regulatory landscape, and the significance of old institutional economic theory in formulating effective CSR practices. It argues that by acknowledging the influence of informal institutions – including community norms, values, families, religion and social networks – companies can refine their CSR strategies, promoting sustainable development and equitable benefit-sharing with communities impacted by resource extraction. Integrating local realities into CSR approaches can enhance corporate-community relations and foster prosperity in Nigeria’s oil-rich regions, paving the way for more responsible and impactful business practices.