Nigerian firms urged to integrate risk reform for growth

Nigerian firms must integrate robust risk management into their core strategies to attract sustainable investment, corporate executives urged at a Lagos seminar, warning that weak risk culture and erratic policies threaten economic resilience.

The hybrid session, hosted by Kreston Pedabo under the theme “Spreading Business Resilience: Integrating Enterprise Risk Management for Sustainable Growth,” convened stakeholders, academics, and executives.

Speakers noted that only 20 per cent of Nigeria’s listed firms fully embed ERM, leaving most exposed to shocks from misaligned strategies and regulatory volatility.

Head of Audit, Risk and Internal Control at Lafarge Africa Plc, Olanike Olakanle, described the current situation as worrying.

“Many organisations have the documents, but ERM is not embedded in how decisions are made. There’s little linkage between strategy and risk management, and this gap continues to expose businesses to avoidable crises,” she said.

Olakanle added that without predictive tools like artificial intelligence, combined with a robust governance culture, businesses will remain reactive and slow to adapt.

“Technology alone won’t save you. Risk culture must be internalised across all levels of the organisation,” she added.

Executive Director at Ecobank Nigeria Limited, Biyi Olagbami, said regulatory instability and poor risk ownership were harming business confidence.

“Knee-jerk changes to policies do more harm than good. We need stability; we need foresight. When regulation doesn’t align with business value, the result is uncertainty,” he said.

Olagbami called for businesses to reframe risk planning as an enabler, not a barrier. “Risk management should be present at the strategy table, not just in audit reports,” he noted.

Academic Director at Wake Forest University and Senior Regulator at the US SEC, Dr Joseph Atatsi, said the Nigerian market could not afford to keep ignoring global risk trends.

“We’re in an era of interconnected risks — from cyber disruptions to climate shocks. Nigerian companies must build internal capacity and systems that can anticipate and withstand global volatility.”

Managing Partner of Kreston Pedabo, Ajibade Fashina, said a major obstacle to resilience is the outdated view of ERM as merely a compliance task.

“The firms that will lead in the next decade are those who understand that risk is not just a threat — it’s a lens through which to see opportunities,” he said.

While commending recent regulatory efforts, including the SEC’s risk-based supervision initiatives, the panellists insisted that implementation remained a challenge due to a lack of coordination, inadequate data, and inconsistent political will.

Head of Enterprise Risk Management at Seplat Energy Plc, Abiola Ogunleye, said businesses must build industry-specific frameworks and ensure consistent maturity across departments.

“ERM cannot live in silos. It has to be part of culture, structure, and strategy. Only then can it deliver value.”

The experts urged both the public and private sectors to adopt a long-term view of resilience, calling for stronger collaboration, investment in data-driven tools, and a more stable policy environment.