E-Business
Allianz Risk Barometer 2022: Cyber Perils Outrank Covid-19 and Broken Supply Chains as Top Nigerian Business Risk
Cyber perils are the biggest concern for companies in Nigeria, Africa and Middle East, South Africa and worldwide in 2022, according to the Allianz Risk Barometer.
The threat of ransomware attacks, data breaches or major IT outages worries companies even more than business and supply chain disruption, natural disasters or the Covid-19 pandemic, all of which have heavily affected firms in the past year.
Globally, cyber incidents tops the Allianz Risk Barometer for only the second time in the survey’s history (44% of responses), Business interruption drops to a close second (42%) and Natural catastrophes ranks third (25%), up from sixth in 2021.
Climate change climbs to its highest-ever ranking of sixth (17%, up from ninth), while Pandemic outbreak drops to fourth (22%).
The annual survey from Allianz Global Corporate & Specialty (AGCS) incorporates the views of 2,650 experts in 89 countries and territories, including CEOs, risk managers, brokers and insurance experts. View the full global and country risk rankings.
“’Business interrupted’ will likely remain the key underlying risk theme in 2022,” Joachim Mueller, AGCS CEO summarized.
“For most companies the biggest fear is not being able to produce their products or deliver their services. 2021 saw unprecedented levels of disruption, caused by various triggers.
Crippling cyber-attacks, the supply chain impact from many climate change-related weather events, as well as pandemic-related manufacturing problems and transport bottlenecks wreaked havoc.
This year only promises a gradual easing of the situation, although further Covid-19-related problems cannot be ruled out.
Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies.”
Violence, changes in legislation and regulation rising concerns in Nigeria
Political risks and violence and changes in legislation and regulation are rising concerns for businesses in Nigeria. Political risks and violence moved from fifth to second following #EndSars in 2020. Changes in legislation and regulation moves up four places to fourth in the country.
“Fortunately, large scale terrorism events have declined drastically in the last five years. However, the number, scale and duration of riots and protests in the last two years is staggering and we have seen businesses suffering significant losses,” said Bjoern Reusswig, Head of Global Political Violence and Hostile Environment Solutions at AGCS.
“Civil unrest has soared, driven by protests on issues ranging from economic hardship to police brutality which have affected citizens around the world. And the impact of the Covid-19 pandemic is making things worse – with little sign of an end to the economic downturn in sight, the number of protests is likely to continue climbing.”
“Preparation is key – in particular for exposed sectors such as retail,” explained Thusang Mahlangu AGCS Africa CEO. “Businesses need to review their business continuity plans (BCP) and should be aware of what is happening around them. Typically, these only focus on national catastrophes, but there is a need for BCP plans to address political disturbances and other types of business disruption like cyber. Having defined, and preferably tested, procedures in place is crucial – these should include staff, client and general communication and social media plans. It is imperative for companies to think deeply about how they can best protect their assets and people.”
Ransomware drives cyber concerns while awareness of BI vulnerabilities grows
Cyber incidents ranks as a top three peril in most countries and regions surveyed including Nigeria, South Africa as well as Africa and Middle East.
The main driver is the recent surge in ransomware attacks, which are confirmed as the top cyber threat for the year ahead by survey respondents (57%).
Recent attacks have shown worrying trends such as ‘double extortion’ tactics combining the encryption of systems with data breaches; exploiting software vulnerabilities which potentially affect thousands of companies (for example, Log4J, Kaseya) or targeting physical critical infrastructure (the Colonial pipeline in the US).
Cyber security also ranks as companies’ major environmental, social and governance (ESG) concern with respondents acknowledging the need to build resilience and plan for future outages or face the growing consequences from regulators, investors and other stakeholders.
“Ransomware has become a big business for cyber criminals, who are refining their tactics, lowering the barriers to entry for as little as a $40 subscription and little technological knowledge. The commercialization of cyber crime makes it easier to exploit vulnerabilities on a massive scale. We will see more attacks against technology supply chains and critical infrastructure,” explains Scott Sayce, Global Head of Cyber at AGCS.
Business interruption (BI) ranks as the second most concerning risk globally and in Africa and Middle East and South Africa but moves down two places to sixth in Nigeria.
However, it ranked first in Ghana, Kenya, Morocco and Namibia.
In a year marked by widespread disruption, the extent of vulnerabilities in modern supply chains and production networks is more obvious than ever.
According to the survey, the most feared cause of BI is cyber incidents, reflecting the rise in ransomware attacks but also the impact of companies’ growing reliance on digitalization and the shift to remote working. Natural catastrophes and pandemic are the two other important triggers for BI in the view of respondents.
In the past year post-lockdown surges in demand have combined with disruption to production and logistics, as Covid-19 outbreaks in Asia closed factories and caused record congestion levels in container shipping ports.
Pandemic-related delays compounded other supply chain issues, such as the Suez Canal blockage or the global shortage of semiconductors after plant closures in Taiwan, Japan and Texas from weather events and fires.
“The pandemic has exposed the extent of interconnectivity in modern supply chains and how multiple unrelated events can come together to create widespread disruption. For the first time the resilience of supply chains has been tested to breaking point on a global scale,” said Philip Beblo, Property Industry Lead, Technology, Media and Telecoms, at AGCS.
According to the recent Euler Hermes Global Trade Report, the Covid-19 pandemic will likely drive high levels of supply chain disruption into the second half of 2022, although mismatches in global demand and supply and container shipping capacity are eventually predicted to ease, assuming no further unexpected developments.
Awareness of BI risks is becoming an important strategic issue across entire companies.
“There is a growing willingness among top management to bring more transparency to supply chains with organizations investing in tools and working with data to better understand the risks and create inventories, redundancies and contingency plans for business continuity,” said Maarten van der Zwaag, Global Head of Property Risk Consulting at AGCS
Pandemic preparations improve. Next up – making businesses more weatherproof
Pandemic outbreak remains a major concern for companies but drops from second to fourth position globally and from first to ninth in Nigeria (although the survey predated the emergence of the Omicron variant).
However, the risk moved up from fourth to third in Ghana, which shows that companies are still concerned about the peril. While the Covid-19 crisis continues to overshadow the economic outlook in many industries, encouragingly, businesses do feel they have adapted well.
The majority of respondents (80%) think they are adequately or well-prepared for a future incident.
Improving business continuity management is the main action companies are taking to make them more resilient.
The rise of Natural catastrophes and Climate change to third and sixth position globally respectively is telling, with both upwards trends closely related.
Recent years have shown the frequency and severity of weather events are increasing due to global warming. For 2021, global insured catastrophe losses were well in excess of $100bn – the fourth highest year on record.
Hurricane Ida in the US may have been the costliest event, but more than half of the losses came from so-called secondary perils such as floods, heavy rain, thunderstorms, tornados and even winter freezes, which can often be local but increasingly costly events. Examples included Winter Storm Uri in Texas, the low-pressure weather system Bernd, which triggered catastrophic flooding in Germany and Benelux countries, the heavy flooding in Zhengzhou, China, and heatwaves and bushfires in Canada and California.
Allianz Risk Barometer respondents are most concerned about climate-change related weather events causing damage to corporate property (57%), followed by BI and supply chain impact (41%).
However, they are also worried about managing the transition of their businesses to a low-carbon economy (36%), fulfilling complex regulation and reporting requirements and avoiding potential litigation risks for not adequately taking action to address climate change (34%).
“The pressure on businesses to act on climate change has increased noticeably over the past year, with a growing focus on net-zero contributions,” observed Line Hestvik, Chief Sustainability Officer at Allianz SE.
“There is a clear trend for companies towards reducing greenhouse gas emissions in operations or exploring business opportunities for climate-friendly technologies and sustainable products. In the coming years, many corporate decision-makers will be looking even more closely at the impact of climate risks in their value chain and taking appropriate precautions. Many companies are building up dedicated competencies around climate risk mitigation, bringing together both risk management and sustainability experts.”
Businesses also have to become more weatherproof against extreme events such as hurricanes or flooding.
“Previous once-in-a-century-events may well occur more frequently in future and also in regions which were considered ‘safe’ in the past. Both buildings and business continuity planning need to become more robust in response,” said van der Zwaag.
Other risers and fallers in this year’s Allianz Risk Barometer:
Shortage of skilled workforce (13%) is a new entry in the top 10 risks at number nine. Attracting and retaining workers has rarely been more challenging. Respondents rank this as a top five risk in the engineering, construction, real estate, public service and healthcare sectors, and as the top risk for transportation.
Changes in legislation and regulation remains fifth (19%) globally but moves up four places to fourth in Nigeria. Prominent regulatory initiatives on companies’ radars in 2022 include anti-competitive practices targeting big tech, as well as sustainability initiatives with the EU taxonomy scheme.
Fire and explosion (17%) is a perennial risk for companies, ranking seventh as in last year’s survey. Market developments (15%) falls from fourth to eighth year-on-year but moves up six places to fourth in Nigeria. Macroeconomic developments (11%) falls from eighth to 10th globally but remains unchanged at number three in Nigeria.
Jumia Nigeria, the country’s e-commerce platform, has introduced a new instalment payment option on its marketplace through a partnership with Buy Now, Pay Later (BNPL) provider Klump, giving customers another way to pay for purchases without bearing the full cost upfront.
The new option allows eligible customers to spread payments for selected purchases over a period of up to 12 months after making an initial deposit of between 20 and 30 percent. The partnership is expected to widen access to products such as smartphones, electronics, home appliances, and other everyday essentials for consumers who may prefer structured repayment plans over one-time payments.
Customers selecting the option at checkout can compare financing offers from participating financial institutions, complete a digital credit assessment, and, once approved, begin repayment through fixed monthly instalments. The introduction of instalment payments comes as digital commerce continues to evolve in Nigeria, with retailers exploring payment options that respond to changing consumer spending patterns and the growing demand for financial flexibility.
Commenting on the partnership, Chief Executive Officer of Jumia Nigeria, Temidayo Ojo, said the initiative reflects the company’s commitment to making online shopping more accessible to a wider range of consumers.
“We are constantly looking at practical ways to remove barriers to online shopping. For many customers, affordability is not always about the price of a product but about having payment options that fit their financial reality. By introducing instalment payments with Klump, we are giving customers greater flexibility while making quality products more accessible.”
He added that expanding payment choices forms part of Jumia’s wider effort to improve the overall customer experience and support the company’s ambition of becoming Nigeria’s everyday retail destination.
“Whether we are strengthening our logistics network, expanding product selection, or introducing new payment solutions, the goal remains the same: to make shopping on Jumia simpler, more convenient, and more accessible for customers wherever they are,” Ojo said.
Founded to simplify access to goods across Africa, Jumia has continued to invest in technology, logistics, and payment solutions to make digital commerce easier for consumers in both major cities and emerging markets across Nigeria.
The addition of instalment payments complements the range of payment methods already available on the platform and comes at a time when consumer demand for flexible financing options is increasing across the retail sector.
Celestine Omin, Co-founder and Chief Executive Officer of Klump, said the partnership aligns with Klump’s objective of expanding access to responsible consumer credit.
“When we started Klump, our mission was simple: to give Nigerians access to affordable credit wherever they shop. Today, we’re pleased to partner with Jumia to bring flexible instalment payments to one of Africa’s largest e-commerce marketplaces, making it easier for more customers to access the products they need,” Omin said.
Under the arrangement, Klump will provide the financing infrastructure while customers complete the application process digitally during checkout. Financing offers are provided through participating financial institutions, subject to approval.
For Jumia, the partnership represents another step in expanding the range of services available on its marketplace while supporting broader efforts to deepen digital commerce and financial inclusion. As more Nigerians turn to online shopping, the availability of flexible payment options is expected to lower one of the barriers to e-commerce adoption, particularly for higher-value purchases.
Customers can access the instalment payment option by selecting Klump at checkout on eligible products available on the Jumia platform.
The Lagos State Government has launched a new financing initiative that will provide single-digit interest loans of up to N10 million to micro, small and medium enterprises (MSMEs), in a major push to improve access to affordable credit and stimulate business growth across the state.
The initiative, known as the Lagos State Access to Finance for SMEs through Cooperatives (LASMECO) programme, offers eligible businesses loans at a fixed 9 per cent annual interest rate, with repayment periods of up to 36 months for term loans and 24 months for working capital facilities. Beneficiaries will also enjoy moratoriums of six months and three months respectively.
The scheme was unveiled on Monday during the opening of a three-day LASMECO Accelerator Training Workshop organised by the Ministry of Commerce, Cooperatives, Trade and Investment, in Lagos.
In her keynote address, the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Bada Ambrose-Medebem, said the programme was designed to bridge the financing gap facing thousands of Lagos businesses that have been priced out of conventional lending because of high interest rates and stringent collateral requirements.
Ambrose-Medebem, represented by the Director of Cooperative Services, Adeyinka Adeyemi, noted that MSMEs account for about 80 per cent of employment and contribute roughly 75 per cent of Lagos State’s Gross Domestic Product (GDP), yet many struggle to access affordable credit as commercial lending rates range between 35 and 40 per cent.
According to the commissioner, LASMECO addresses the challenge by using registered cooperative societies as financial intermediaries and guarantors, allowing entrepreneurs to obtain loans without relying solely on conventional collateral.
Under the financing framework, she said borrowers will provide 10 per cent cash collateral, while their cooperative societies will guarantee 25 per cent of the loan, adding that Sterling Bank Plc would provide a 50 per cent guarantee, creating a layered risk-sharing structure that makes lending more accessible and sustainable.
The programme targets businesses in agriculture, manufacturing, healthcare, the digital economy, creative industries, tourism, environmental sustainability and education.
The commissioner disclosed that the Lagos State Government has released its counterpart funding, while the Bank of Industry (BOI) has matched the state’s contribution, paving the way for loan disbursement, saying that BOI would serve as co-funder and final loan approver, while Sterling Bank would process applications, conduct credit assessments, disburse funds and recover repayments.
The commissioner reaffirmed the Lagos State Government’s commitment to ensuring the success of the initiative, expressing confidence that the programme would unlock affordable financing for thousands of entrepreneurs while boosting employment, productivity and economic development across the state.
Earlier, the Permanent Secretary in the ministry, Mr Babatunde Onigbanjo, said the workshop marked the transition of LASMECO from policy to implementation, stressing that the programme was fully funded and ready for rollout.
He said all necessary groundwork had been completed, including the release of counterpart funding, execution of memoranda of understanding and onboarding of accelerator organisations, adding that participants were now being equipped to begin recruiting and preparing loan beneficiaries.
According to him, the three-day workshop is designed to prepare accelerator organisations to identify eligible MSMEs, assess their credit readiness, compile loan applications and support borrowers from application through disbursement and repayment.
Onigbanjo urged participants to focus on quality rather than quantity in recruiting loan applicants, warning that poorly prepared businesses could increase loan defaults and undermine the programme.
He stressed that accelerator organizations would only be paid when the businesses they support successfully secure funding, saying the arrangement was intended to align their interests with the success of the programme.
The permanent secretary also emphasised that every loan applicant must belong to a registered cooperative society, describing the cooperative model as central to the programme because cooperatives provide a 25 per cent guarantee for every facility while helping to formalise informal businesses.
He disclosed that Lagos has more than 13,000 registered cooperative societies, although only about 1,900 to 2,200 are currently active, adding that reviving dormant cooperatives would significantly expand access to the financing scheme.
Onigbanjo warned accelerator organizations against charging applicants processing, training or evaluation fees, stressing that the only approved deductions are a N200,000 accelerator support fee and a one per cent BOI appraisal fee, both payable only after successful loan disbursement.
He said the state would closely monitor loan recovery, business growth, job creation, cooperative compliance and portfolio performance, adding that only accelerator organisations that deliver strong results would remain in the programme.
The permanent secretary described LASMECO as more than a loan scheme, saying it is also a strategy to formalise businesses, strengthen cooperatives, promote industrialization and drive inclusive economic growth across Lagos.
He urged participants to make full use of the workshop to prepare for immediate enrolment of qualified businesses, insisting that the programme had moved beyond planning and was now ready for implementation.
Socio-Economic Rights and Accountability Project (SERAP) has threatened to drag the National Assembly to court over a proposed amendment to the Nigeria Data Protection Act, which it alleges could indirectly empower the government to shut down social media platforms in Nigeria.
SERAP, which made the threat in an open letter to Godswill Akpabio, Senate President, and Tajudeen Abbas, speaker of the House of Representatives, urged them to immediately reject and withdraw the Nigeria Data Protection (Amendment) Bill, 2026, sponsored by Senator Ned Nwoko (APC, Delta North).
The civil organisation described the proposed legislation as a “backdoor attempt” to regulate social media and expand government control over online expression.
It further warned that if the bill is enacted in its current form or a substantially similar one, it would “promptly take all appropriate legal actions” to challenge its legality in the public interest and protect the fundamental rights of Nigerians.
The bill seeks to compel social media platforms, data controllers, and data processors operating in Nigeria to establish physical offices in the country.
It further empowers the Nigeria Data Protection Commission (NDPC) to shut down or prohibit the operations of any entity that fails to comply within 30 days.
SERAP, in the letter dated July 18, 2026 and signed by Kolawole Oluwadare, deputy director, SERAP, argued that the proposed powers could enable an administrative agency to impose what would effectively amount to a nationwide restriction on digital communication without adequate judicial or procedural safeguards.
“The Bill constitutes a backdoor attempt to regulate social media and increase governmental control over online expression through corporate localisation requirements rather than through transparent and constitutionally permissible regulation,” the organisation said.
It also maintained that the proposed localisation requirement could increase government leverage over technology companies, facilitate political pressure, and make censorship demands easier to enforce.
SERAP further warned that requiring companies to establish local offices could expose their employees in Nigeria to retaliation.
The organisation said the proposed amendment could affect millions of Nigerians who rely on digital platforms to exercise their rights to freedom of expression, access information, associate with others, participate in political life, conduct business, pursue education, and engage in civic advocacy.
SERAP particularly criticised the proposed power of the NDPC to prohibit entities from operating in Nigeria after a 30-day period of non-compliance.
It said the bill contains no requirement for prior judicial authorisation, no obligation to consider less restrictive alternatives, and no meaningful safeguards to assess the impact of a prohibition on the fundamental rights of millions of Nigerians.
“In effect, the Bill empowers an administrative agency to impose sanctions comparable to a nationwide restriction on digital communication without the procedural guarantees ordinarily required whenever fundamental rights are at stake,” it said.
SERAP argued that the proposed provision could not withstand scrutiny under Section 45 of the Nigerian Constitution, which permits restrictions on fundamental rights only when prescribed by law, pursued in the pursuit of a legitimate aim, and reasonably justifiable in a democratic society.
While recognising the government’s legitimate interest in ensuring that digital platforms comply with Nigerian law, the organisation contended that such regulation must meet the constitutional criteria of necessity and proportionality.
“There is no evidence that existing powers under the Nigeria Data Protection Act are inadequate, that current enforcement mechanisms have failed, or that less restrictive alternatives would be insufficient,” it stated.
SERAP further cautioned that the proposed legislation could recreate the repercussions of the Federal Government’s suspension of Twitter, which the ECOWAS Court of Justice previously criticised
In SERAP and Others v. Federal Republic of Nigeria, the regional court ruled that the Twitter suspension infringed rights to freedom of expression, access to information, and media freedom protected under the African Charter on Human and Peoples’ Rights.
Although the proposed amendment differs from the Twitter suspension, SERAP argued that it might produce a similar outcome indirectly by empowering regulators to bar digital platforms from operating in Nigeria.
“The National Assembly should not enact legislation capable of producing, through indirect regulatory means, the very restrictions on fundamental rights that regional human rights law prohibits,” the organisation emphasised.
It also cited Section 39 of the Nigerian Constitution, Article 19 of the International Covenant on Civil and Political Rights, and Article 9 of the African Charter, as securing freedom of expression and access to information.
SERAP maintained that international human rights standards mandate restrictions on freedom of expression to be lawful, necessary, proportionate, and the least intrusive means available to achieve a legitimate public goal.
The organisation additionally warned that mandatory localisation requirements could undermine Nigeria’s digital economy and innovation ecosystem by raising compliance costs for technology firms, start-ups, open-source projects, educational institutions, research organisations, and artificial intelligence developers.
It argued that the proposed amendment might make Nigeria less attractive to technology investors and conflict with the objectives of the Nigeria Startup Act 2022 and the National Digital Economy Policy and Strategy.
“The National Assembly should not achieve indirectly through regulatory localisation requirements what it cannot constitutionally achieve directly through restrictions on social media. The practical consequences for millions of Nigerians would be indistinguishable from a platform ban,” SERAP stated.
It urged Akpabio and Abbas to reject and withdraw the bill, warning that its enactment would breach the Nigerian Constitution and Nigeria’s commitments under international and regional human rights instruments.
“The National Assembly should seize this opportunity to demonstrate its commitment to constitutional democracy, the rule of law, and Nigeria’s digital future by immediately withdrawing the Bill,” SERAP added.
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