Nigerian Firms Abandon “Paper Policies” For Active Risk Tracking – Report

A new report from professional services firm Kreston Pedabo reveals a major shift in how Nigerian companies handle business threats. According to the study released in February 2026, firms are moving away from “informal” risk management, where policies often sit unused in files, toward structured, real-time strategies.

 This change is driven by a much tougher stance from regulators like the Central Bank of Nigeria (CBN) and the National Insurance Commission (NAICOM), who now demand proof that risk management actually guides daily business decisions.

The report highlights that regulators are no longer satisfied with “box-ticking” exercises. Instead, they are looking for active Enterprise Risk Management (ERM) systems that can handle an “invisible battle” of modern threats.

These include sophisticated cyberattacks, high inflation, and the fast-changing rules of the new 2025 Tax Act. For many companies, this means moving risk oversight out of the back office and directly into the boardroom, where senior leaders are now being held personally accountable for their firm’s resilience.

To meet these new expectations, many Nigerian firms are investing heavily in data tools and AI-driven analytics. These systems allow companies to “stress test” their finances against things like currency devaluation or sudden policy changes before they happen.

By using these proactive tools, businesses are finding they can react much faster to market shocks. The report concludes that in today’s volatile environment, having a strong risk framework is no longer just a legal requirement; it has become a necessary tool for survival and attracting international investors.