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By Henry Uche
The absence of risk management in Nigeria’s development strategies has been identified as a major stumbling block to the country’s progress, with experts describing it as a systemic oversight that continues to threaten economic growth, public safety and national stability.
Speaking at a recent Risk Management Forum organised by the Risk Management Society of Nigeria (RIMSON), the Executive Vice Chairman of Insurance Brokers of Nigeria Limited, Mr. Onotu Prosper Okpue, delivered a bold and thought-provoking speech that told it like it is.
Drawing attention to Nigeria’s National Development Plan (NDP) 2021–2025, Okpue highlighted what he called a “glaring and dangerous omission.”
“A painstaking look at the nine pages of the foreword and executive summary of the NDP 2021–2025 shows that the words ‘risk’ and ‘risk management’ are not mentioned even once,” he said. “That is the highest point of insensitivity and backward-minded leadership.”
Okpue likened the absence of risk management in policy planning to a chef forgetting a key ingredient in a critical meal.
“Risk management is the most important ‘cooking ingredient’ which Nigerian leaders fail to consistently add to the ‘cooking pot’ of delicious soup required to eat the plate of pounded yam. Therefore, the pleasant aroma, satisfaction, and pleasure from the lunch are sadly missing,” he stated.
Deficiency in the National Development Plan
Launched in December 2021 to replace the Economic Recovery and Growth Plan (ERGP), the NDP 2021–2025 was heralded as a blueprint for socio-economic transformation. With targets such as creating 21 million full-time jobs and lifting 35 million Nigerians out of poverty, the plan seemed ambitious. However, experts now say its failure to incorporate risk management mechanisms has undermined its potential.
This failure is showing: Instead of the expected job creation, over 7.2 million Micro, Small and Medium Enterprises (MSMEs) have shut down operations under the current administration, according to Dr. Segun Omisakin, Chief Economist at the Nigerian Economic Summit Group (NESG).
“Does this not validate what RIMSON has been advocating for?” Okpue asked rhetorically.
He attributed much of Nigeria’s economic instability to inadequate risk management: from hyperinflation triggered by fuel subsidy removal, the Naira’s rapid devaluation, infrastructural collapse, brain drain, insecurity, and regulatory uncertainty, to foreign investment withdrawals.
Need for risk management in national planning
Okpue argued that effective risk management frameworks are vital for building resilience and achieving long-term national development.
“Risk management protects lives, assets, and investments. It helps control financial volatility, promotes macroeconomic stability, ensures regulatory compliance, and fosters sustainable development,” he said.
He stressed that risk management should be embedded across all sectors, public and private, from the presidency to local governments.
In the financial sector, he noted, risk is already a known factor, yet the system is not immune.
“Some ‘School of Thought’ sees the consistent huge loan failures in banks as a sign of failed risk management practices, often tied to poor corporate governance,” he observed.
Despite this, some financial institutions, including insurance firms, maintain best practices. Okpue pointed out that while many Nigerians lack awareness of insurance and risk treatment solutions, several companies and individuals are already benefiting from robust insurance coverage.
Public sector lagging behind
The public service, he said, is especially guilty of neglect.
“Only a few government agencies, such as the CBN, NAICOM, SEC, Fire Service, and NEMA, take visible action on embedding risk management,” he said.
He urged President Bola Tinubu to integrate risk management practices across government operations as part of his reform agenda, noting that “it is imperative to guide and ensure the success of government decisions and actions from policy formulation to implementation.”
Wasted potential in infrastructure and energy
Highlighting frequent project failures and building collapses, especially in Lagos, Okpue blamed poor risk planning.
“The failure and cost overrun of several government projects can be partly attributed to the non-integration of risk management into the implementation process,” he said.
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In the oil, gas, and power sectors, some indigenous firms, like NLNG, Chevron Nigeria, and Seplat, were praised for applying best practices. However, recurring disasters from fuel tanker accidents and refinery underperformance reflect broader systemic risk management failures.
Health Sector Neglect
Public healthcare is another area where risk planning is absent.
“Despite surviving outbreaks with relatively fewer casualties, Nigeria’s healthcare system is overwhelmed by poor facilities, a shortage of professionals, and overreliance on imports,” Okpue said.
The recent electricity blackout at the University College Hospital, Ibadan, which drew the attention of the National Assembly, was cited as a shameful example of risk mismanagement.
Wake-up call
Okpue concluded with a call for cross-sectoral reform: “Risk management must be institutionalised in all sectors, from infrastructure to agriculture, from financial services to governance. The future of Nigeria’s development hinges on our ability to manage uncertainty with competence and foresight.”
For a nation facing multiple headwinds, the message from the risk community is clear: Nigeria cannot afford to keep playing dice with its future.
Technology, cybersecurity and urgent case for risk management in Nigeria
Despite its growing reliance on digital platforms, Nigeria’s technology and cybersecurity landscape remains alarmingly vulnerable. Experts are raising red flags over the absence of robust cyber risk management practices across several industries, describing the sector as “a bomb waiting to explode.”
The concerns stem from the increasing complexity of digital threats—ranging from data breaches and cyber fraud to ransomware attacks—at a time when many organisations operate with minimal transparency around their cybersecurity frameworks. While cyber insurance exists as a critical safety net that encourages proper risk assessment and control, access to it in Nigeria remains limited, underutilised, and difficult to secure.
“Cyber insurance is not mandatory by law, and the appetite of foreign insurers for cyber risks in Africa is low,” one expert said. “Even when available, coverage for African risks tends to come with unfriendly terms and higher premiums. This is where the guidance of an experienced insurance broker becomes indispensable.”
Beyond the tech sector, stakeholders are increasingly making the case that sound risk management practices must underpin Nigeria’s national development goals. From economic stability and investment confidence to disaster preparedness and governance reform, the benefits of proactive risk planning are too substantial to ignore.
“The successful implementation of risk management practices in Nigeria boosts sustainable economic growth and investment confidence, as a stable economic environment attracts foreign and local investments,” the expert noted.
“Nigeria would enjoy enhanced resilience to crises through the fostering of preparedness in handling financial and economic downturns, security threats, and environmental disasters. Risk mitigation also reduces financial losses, prevents economic disruptions, and curbs resource wastage.”
He further emphasised that improved governance and accountability are outcomes of strengthened institutional frameworks, achieved through routine risk assessments, monitoring mechanisms, and sustainable decision-making.
“To fully harness the benefits of risk management, a holistic and coordinated approach must be adopted across the private and public sectors,” he said. “There should be public sector integration through legislative and policy frameworks, strengthening laws that mandate risk management in public governance and project execution.”
He called for targeted capacity building in public institutions to foster transparency and accountability, urging that training and development programmes must equip policymakers to embed continuous risk evaluations into all phases of decision-making.
Private sector participation, according to him, is equally vital.
“Enterprise Risk Management (ERM) should be adopted across businesses to boost resilience and competitiveness. Promoting insurance and risk transfer mechanisms can cushion financial risks across trades and industries,” he said.
He also highlighted the power of Public-Private Partnerships (PPP) as a risk-sharing model that should be expanded across infrastructure, healthcare, and economic development projects.
“Risk management education and practices should be extended even to religious organisations, to promote peaceful coexistence and institutional stability.”
On the role of technology, he noted that Nigeria must leverage data-driven systems, artificial intelligence, and predictive analytics to strengthen risk identification and mitigation efforts.
“Modern technologies can vastly improve cybersecurity frameworks, especially within financial and government institutions. Big data analytics, combined with risk modelling, allows for more precise forecasting and smarter decision-making.”
While acknowledging that Nigeria has made modest progress, he warned that a more structured, integrated, and forward-looking approach is needed to address chronic vulnerabilities and emerging risks.
“By simultaneously addressing downside risks and capitalising on the opportunities within upside risks, Nigeria can unlock long-term growth and resilience,” he explained. “But this requires collaboration between the public and private sectors, regulatory reform, and a national commitment to risk management as a development strategy.”
“Such commitment will not only protect national assets and investments, but will also create an enabling environment for prosperity, security, and stability,” he concluded.
As Nigeria charts its path forward, the message from risk professionals says that welding risk management into every layer of national life is not just a technical requirement, but a survival strategy.
