FG Establishes Committee to Enhance Credit Risk Management in Nigeria

Nume Ekeghe

The federal government has established a committee to assess and manage the various credit and other  risks confronting the country.
The initiative was announced by the Managing Director and Chief Executive Officer of the Bank of Industry (BoI), Dr. Olasupo Olusi, during the annual conference of the Chartered Risk Management Institute (CRMI) in Lagos yesterday.

Olusi, who was honoured with an honorary fellowship at the event noted that the committee was expected to submit finding within four weeks to the presidency.
Also, CRMI honoured its first set of Honorary Fellowship Awards to the Deputy Governor of Lagos State, Dr. Kadir Obafemi Hamzat, the Governor of the Central Bank of Nigeria (CBN)  Olayemi Cardoso, Executive Chairman Federal Inland Revenue Service (FIRS)  Zaccheus Adedeji, Director General, Securities and Exchange Commission (SEC), Emomotimi Agama, among others.

Others Awarded were the Group Managing Directo Zenith Bank, Dr. Adaora Umeoji, Managing Director/ Chief Executive Officer Access Bank, Dr. Roosevelt Ogbonna and the Managing Director/ Chief Executive Officer, Fidelity Bank, Dr. Nneka Oyeali-Ikpe.
Another highlight at the event was the signing of the Memorandum of Understanding (MOU) to establish the Federation of African Risk Management Associations (FARMA) with Risk institute heads represented by South Africa, Cote D’Ivoire, Morocco, Senegal, Benin Republic, and Kenya present.
Olusi  said: “I’m delighted to say that President Bola Tinubu, who understands the importance of risk management and implication for our economy at large has recently set up a committee to look into ways we can manage risks, credit risks better and he gave us a mandate to report to him back to him within the next four weeks.”

“I want to assure you that we shall all continue to advocate strong risk management in our various establishments.”
The conference, themed: ‘Emerging Crisis in Africa: Way Forward,’ also featured remarks from Dr. Ezekiel Oseni, President and Chairman of Council at CRMI.
 He disclosed that the institute had sponsored a risk management bill currently under review in the National Assembly, which has already passed its first reading.
“One of the key initiatives of the institute is sponsoring a bill at the National Assembly, as I promised last year. The bill has already passed its first reading. This legislation aims to mandate every Ministry, Department, and Agencies to establish a risk management function.

“We envision every ministry and state government having a dedicated risk management department. This legislative move is a practical step towards positioning risk management as a fundamental component of governance in Nigeria,” Oseni said.

He further emphasised the importance of government support, noting: “As the Institute continues to champion initiatives that enhance the resilience and sustainability of the economy, it’s crucial that the government recognises and backs the role that this institute is playing.”

President, Association of Risk Management, Republic of Benin, Agossou Elie Agbazahou, President Association for Corporate Risk and Insurance Management, Casablanca, Morroco, Mohammed Aziz Derj, president, Ivorian Network of Enterprise Risk Management and Insurance, Ivory Coast Sande Fatola, president, Institute of Risk Management, South Africa  Bheki Gutshwa; Founder, Institute of Risk Management, East Africa, Dorothy Maseke and president, Senegalese Risk Management Association, Ibuou Sougoufara were present to sign the MoU.

In his keynote address, Deputy Governor of Lagos State, Dr. Kadri Obafemi Hamzat said: “Taking a broad view of risk management from a governance point of view, insecurity has plagued the landscape creating turmoil, instability, and forced migration leading to internal displacement of persons among many other social indicators.

“Government cannot abdicate its role and responsibility of providing safety for the lives and properties of citizens, residents and investors under such ignoble conditions. Hard decisions have to be taken with due consideration for the risks involved without compromising sovereign or territorial integrity.

“By and large, the greater risks in decision-making by government has been in the economic growth and development of our society, particularly with the growing influence of the use of Artificial Intelligence (AI) and Robotics.

“This has engendered the necessity to legislate for the protection of data and other sensitive information that could be “harvested” with the ingenuous use or deployment of technology.”