Risks experts have advised economic managers of the country to tackle the issue of conflict, terrorism and political violence if the government’s aim of attracting investors into the country must be fully achieved.
This advice is contained in the Allianz Risk Barometer 2017 report released recently in Lagos.
The report is based on a survey conducted by Allianz Global Corporate & Specialty (AGCS) Africa, among 1,237 risk experts from 55 countries.
In Nigeria, Allianz Global worked with the Association of Enterprise Risk Management Professionals of Nigeria (ERM), Risk Managers Society of Nigeria (RIMSON) and Risk Managers Association of Nigeria (RIMAN).
The report states that the overall risk for Nigeria in 2017 is high on crime, terrorism, conflict, political violence and kidnap.
According to the report, “the resurgence of violence in the Niger Delta is expected to continue in 2017.”
“Militant groups are likely to continue high-profile attacks on oil and gas infrastructure to press the federal government into meeting its demands, which include greater autonomy for the region and a greater share of the oil wealth, which may be untenable considering Nigeria’s current fiscal woes. Greater military action risks increasing anti-government sentiment,” it noted.
President of RIMSON, Engr. Jacob Odeosun said: “The Allianz Risk Barometer 2017 is a worthy compass, telescope and guide which risk managers, investors, professionals, governments, policy makers and corporate entities should not ignore in strategic decisions in 2017”.
On her part, Delphine Maïdou, CEO Allianz Global, Africa, said the country’s growth is held back by weaker macroeconomic environment, the struggling financial sector, underdeveloped infrastructure, insufficient health and education.”
The experts however said, to mitigate volatility risks and anticipate any sudden changes of rules that could impact markets, companies in Nigeria will need to invest more resources into better monitoring politics and policy-making around the world in 2017.