The Control Risks, a global business risk consultant, on Thursday identified diversification as crucial to sustain the West African economy, particularly in Nigeria.
Mr Tom Griffin, the Managing Director of the firm in West Africa, made the remarks at a media forum to formerly announce publication of its annual `RiskMap 2015’ report in Lagos.
He identified political uncertainty and low oil prices as factors posing risks to Nigeria’s economy.
Griffin said that terrorism threat would continue to evolve tactically and geographically, giving the adaptability of the Boko Haram and other insurgent groups operating in West Africa.
Introducing `RiskMap 2015′ in Nigeria, Griffin remarked that 2015 so far had demonstrated the political constraints to Africa’s economic growth story.
“Across Africa, governments have faced difficulties in tackling key issues such as the excessive reliance on commodities such as oil, bottlenecks in the economy, security challenges and the need to improve governance.
“The postponement of Nigeria’s elections has unnerved some investors and made others delay their final investment decisions.
“The economic impact of that has been shown by the drop in the naira.’’
He said the genuinely competitive elections were a critical juncture on Nigeria’s path towards becoming a mature democracy.
“Closely contested polls are uncharted territory for the country’s political system.
“Nonetheless, Nigeria has an impressive capacity for weathering impending crisis and we believe that the upcoming elections will be no different,’’ the managing director said.
He said regardless of the outcome of the polls, the incoming administration would have to contend with multiple challenges of resurrecting the oil sector reform agenda and managing cash-flow crisis in government.
Griffin said the new administration would need to deal with the threat from insurgents and militancy groups in the North East and Niger Delta.
“West Africa will remain a piracy hotpot in 2015, led by Nigeria, where maritime operators are bracing for the fallout from the contested general elections.
“Much will also depend on how the future administration manages the Niger Delta’s former militants,’’ he said.
