Experts Worry over Nigeria’s Poor Risk Management Culture

Emmanuel Addeh in Abuja

Experts in business risk management and corporate executives yesterday expressed worry over the nonchalant attitude of Nigerian businesses to the adoption of  Enterprise Risk Management (ERM) as a strategic tool to ensure long-term growth.

Making their positions known during a seminar hosted by Kreston Pedabo in Lagos, the panellists said most Nigerian firms remain exposed to shocks due to a fragmented approach to risk and poor alignment between regulation and business realities.

The hybrid event which featured regulators, academics, and private sector leaders was themed: “Spreading Business Resilience: Integrating Enterprise Risk Management for Sustainable Growth.”

Head of Audit, Risk & Internal Control at Lafarge Africa Plc, Olanike Olakanle, described the  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.

She added that without predictive tools like Artificial Intelligence (AI), 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 noted.

Executive Director at Ecobank Nigeria Limited, Biyi Olagbami, posited that 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.

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

Also speaking, 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,” Atatsi argued.

Managing Partner of Kreston Pedabo, Ajibade Fashina, said a major obstacle to resilience is the outdated view of ERM as merely a compliance task.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 stated that implementation remained a challenge due to 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,” Ogunleye argued.