Nigeria sets up risk management committee to tackle problems

…Signs MoU to promote risk management across Africa

As part of efforts to address the various risks confronting Nigeria, the Federal Government has established a specialised committee tasked with assessing and managing these challenges.

Olasupo Olusi, managing director and CEO of the Bank of Industry disclosed this during the annual conference of the Chartered Risk Management Institute (CRMI) held in Lagos Thursday.

The committee, expected to submit its findings to the presidency within four weeks, is a testament to the government’s commitment to strengthening risk management across the nation.

Olusi, who was conferred with an honorary fellowship, emphasised the importance of this initiative, noting that it aligns with President Bola Tinubu’s understanding of the critical role risk management plays in ensuring economic stability.

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“I’m delighted to say that His Excellency, President Bola Tinubu, who understands the importance of risk management and its implications for our economy at large, has recently set up a committee to look into ways we can manage risks, particularly credit risks, better”, Olusi stated.

The CRMI also honored several distinguished individuals with its first set of Honorary Fellowship Awards.

Among the awardees were Kadir Obafemi Hamzat, deputy governor of Lagos State; Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN); Zaccheus Adedeji, executive Chairman of the Federal Inland Revenue Service (FIRS); and Emomotimi Agama, director general of both the Nigerian Meteorological Agency (NiMet) and the Securities and Exchange Commission (SEC).

Prominent figures from the banking sector, including Adaora Umeoji, group managing director of Zenith Bank; Roosevelt Ogbonna, managing director and Chief Executive Officer of Access Bank; and Nneka Oyeali-Ikpe, managing director/CEO of Fidelity Bank, were also recognised for their contributions to risk management.

A key highlight of the conference was the signing of a memorandum of understanding aimed at establishing the Federation of African Risk Management Associations (FARMA). This collaboration brings together risk management institute heads from South Africa, Côte d’Ivoire, Morocco, Senegal, Benin Republic, and Kenya. The formation of FARMA represents a concerted effort to enhance risk management practices across the continent, fostering a unified approach to addressing common challenges.

Ezekiel Oseni, president and chairman of the council at CRMI, provided further insights into the institute’s ongoing efforts to institutionalize risk management in Nigeria. He disclosed that the CRMI 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 Agency to establish a risk management function,” Oseni explained. He emphasised that this legislative effort is a practical step towards positioning risk management as a fundamental component of governance in Nigeria, ensuring that every ministry and state government has a dedicated risk management department.

The importance of government support in these initiatives was also underscored by Oseni, who called on the government to back the institute’s efforts in enhancing the resilience and sustainability of the economy. He also highlighted the need for broader support from African governments and multilateral agencies like the African Development Bank (AfDB) and the African Export-Import Bank (Afreximbank) in promoting risk management across the continent.

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In his keynote address, Lagos State Deputy Governor Kadri Obafemi Hamzat emphasised the critical role of risk management from a governance perspective. He highlighted the severe impact of insecurity, which has led to turmoil, instability, and forced migration, resulting in significant internal displacement and other social issues. He asserted that the government must not shirk its duty to safeguard the lives and properties of citizens, residents, and investors, even under challenging conditions. Hard decisions must be made while carefully weighing the associated risks, without compromising national sovereignty or territorial integrity.

Hamzat also pointed out that one of the major challenges in governmental decision-making is fostering economic growth and development, especially given the rising influence of Artificial Intelligence (AI) and robotics. This has created a pressing need for legislation to protect data and sensitive information from misuse through advanced technology.

He noted that the swift advancement and application of technology have increased public engagement in governance, providing more people with platforms to contribute to transparency and accountability. He concluded by underscoring the important role of the Institute in spreading awareness and educating the public about modern risk management.