In a decisive move to fortify the nation’s economic standing, President Bola Tinubu has established a high-level committee dedicated to tackling the multifaceted risks facing Nigeria. This announcement, made at the Chartered Risk Management Institute (CRMI) annual conference in Lagos, underscores the new administration’s commitment to proactive economic risk management in governance.
Olasupo Olusi, Managing Director/Chief Executive Officer of the Bank of Industry and recipient of an honorary fellowship at the CRMI event, revealed the committee’s formation.
“I am 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, credit risks better,” stated Dr. Olusi.
He further emphasized the urgency of the task at hand, noting, “He [President Tinubu] gave us a mandate to report back to him within the next four weeks.”
A New Era of Risk Management in Nigeria
This significant development comes amidst growing recognition of the critical role risk management plays in fostering economic stability and sustainable growth. The CRMI conference, themed “Emerging Crisis in Africa: Way Forward,” served as a timely platform to address these pressing concerns.
Ezekiel Oseni, President/Chairman of Council at CRMI, highlighted the institute’s proactive approach to embedding risk management within Nigeria’s governance framework.
“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,” Oseni announced.
This landmark legislation, if passed, would mandate every ministry, department, and agency to establish a dedicated risk management function, signaling a paradigm shift in how Nigeria approaches potential threats.
Collaboration Key to Mitigating African Risks
The conference also witnessed a landmark agreement aimed at strengthening risk management capabilities across the African continent. The signing of a Memorandum of Understanding (MOU) will pave the way for the establishment of the Federation of African Risk Management Associations (FARMA). This collaborative initiative, with representation from risk institutes in South Africa, Cote D’Ivoire, Morocco, Senegal, Benin Republic, and Kenya, underscores the shared commitment to bolstering risk resilience across Africa.
Oseni emphasized the need for broad support to ensure FARMA’s success: “We call on the governments of all African countries, African Union, and multilateral agencies like AfDB, Afreximbank and Pan-African organisations to support this great cause.”
He further commended institutions like the African Development Bank (AfDB) for their efforts in establishing a pan-African credit rating agency, a crucial step in strengthening financial stability across the continent.
Navigating Risks in the Age of Artificial Intelligence
In his keynote address, Lagos State Deputy Governor, Dr. Obafemi Hamzat, provided a sobering assessment of the complex risk landscape facing Nigeria and the wider continent. He highlighted the devastating impact of insecurity, stating, “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.”
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Hamzat stressed the government’s responsibility in ensuring the safety and security of its citizens, emphasizing the need for decisive action while carefully considering inherent risks. He further drew attention to the emerging challenges posed by rapid technological advancements, particularly in the realm of artificial intelligence (AI).
“By and large, the greater risks in decision-making by government have been in the economic growth and development of our society, particularly with the growing influence of the use of artificial intelligence and robotics,” he cautioned.
Recognizing the potential for data vulnerability in an increasingly digitized world, Dr. Hamzat underscored the need for robust legislation to protect sensitive information from misuse. He acknowledged the role of technology in fostering transparency and accountability, emphasizing the need for balance in harnessing its power for good.
CRMI Recognizes Leaders in Risk Management
The CRMI conference culminated in the awarding of honorary fellowships to individuals recognized for their outstanding contributions to risk management and their respective fields. Alongside Dr. Olusi, recipients included:
Dr. Obafemi Hamzat: Deputy Governor of Lagos State
Olayemi Cardoso: Governor of the Central Bank of Nigeria
Zaccheus Adedeji: Executive Chairman of the Federal Inland Revenue Service
Professor Charles Anosike: Director-General of Meteorological Agency
Dr. Emomotimi Agama: Director-General of the Securities and Exchange Commission
Dr. Adaora Umeoji: Group Managing Director of Zenith Bank
Dr. Roosevelt Ogbonna: Chief Executive Officer of Access Bank
Dr. Nneka Oyeali-Ikpe: Chief Executive Officer of Fidelity Bank
The formation of President Tinubu’s risk management committee, coupled with CRMI’s proactive initiatives and the establishment of FARMA, signals a concerted effort to prioritize risk mitigation as a cornerstone of sustainable economic development in Nigeria and