Enterprise Risk Management as a prevention for business failure in Nigeria

Brief overview of the Nigerian business landscape

Nigeria, Africa’s largest economy and most populous nation, boasts a dynamic business environment rich in natural resources like oil, gas, agriculture, and minerals. Its economy features a diverse mix of large corporations, small and medium enterprises (SMEs), and a thriving informal sector.

However, Nigeria grapples with several challenges, including infrastructural deficiencies such as inadequate power supply, transportation and digital infrastructure. Bureaucratic hurdles, corruption, security concerns and regulatory uncertainties also hinder business operations and investment.

Despite its potential, Nigerian businesses must navigate these challenges alongside macroeconomic fluctuations, currency volatility and market competitiveness. Socio-political factors, regional disparities and demographic shifts further complicate the business landscape, posing challenges for both domestic and foreign investors.

The government has implemented various initiatives aimed at improving the business landscape and fostering economic growth. One notable effort is the Ease of Doing Business reforms initiated by the Federal government in collaboration with State governments and relevant agencies. These reforms target key areas such as business registration, property rights, access to credit, and contract enforcement, with the aim of reducing bureaucratic hurdles and enhancing the overall business environment (Ndukwe and Allison 88-96).

These include policies to boost local entrepreneurship and attract foreign investment, offering incentives like tax breaks and establishing special economic zones. The efforts aim to spur industrialization and job creation while diversifying the economy away from oil dependency, with increased investment in agriculture, manufacturing and renewable energy sectors. Additionally, infrastructure development, including transportation networks, power generation and telecommunications, have been prioritized to enhance competitiveness. Despite progress, sustained commitment to reforms, transparency and good governance are crucial to fully unlock Nigeria’s economic potential and create an environment for businesses to flourish.

Prevalence of business failures in Nigeria

oluwasegun

Born in March to Mr. & Mrs. Lawrence Oluwatayo Agbekeye at Ilesha in Osun State but a native of Ido-Ile in Ekiti State, South West of Nigeria. Oluwasegun is an Enterprise Risk Management, Accounting & Finance, and Business turnaround expert with over two decades of experience. Leading all facets of audit engagements, accounting, finance, and compliance programmes in the service, manufacturing and investment industries. He is a member of the Tony Elumelu Foundation Mentor Guild and an associate member of 1% Club - a global club of entrepreneurs. A trusted Internal Control, Risk, and Compliance, who has displayed strengths in furthering multi-stakeholder engagement for effective business decision-making; setting up internal control/governance structures; developing risk-based, objective-driven and value-added internal audit plans; training and handholding relevant stakeholders through the ERM processes; managing significant financial risk exposures; safeguarding company assets, and ensuring compliance with relevant laws and regulations. He has proven experience serving as board executive and non-executive at various companies (Unilever, PZ Cussons (Nigeria and Ghana), Nigerite, Ire Clay, Crittal Hope, and Odu’a Investments). He has been actively involved in business engagement involving the services of the Big 4 (PwC, KPMG, Deloitte, E&Y) An open leader with a strong ability to build committed teams by empowering individuals, developing talents, and fostering teamwork. He is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), a Certified Fraud Examiner (CFE), a Certified Information Security Manager (CISM), a Certified Information System Auditor (CISA), a Member of the following professional bodies: Institute of Risk Management (IRM), Institute of Internal Auditors (IIA), Information Systems Audit and Control Association (ISACA). Institute of Corporate Governance and Institute of Directors (Ghana). He is currently an entrepreneur through SomMfaso Consults Limited as a consultant and Lasrent Farms and Agro-Allied Services as a farmer. He is a post-graduate student of Babcock University at MSC in Accounting to complete PhD in future.

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