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Allianz Risk Barometer Says Corruption, Burden on Nigerian Businesses

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The Allianz Risk Barometer 2018 report has revealed that theft, fraud and corruption as the top risk in Nigeria with 38% of responses, up from #4 in 2017.

Market developments remains unchanged at #2 at 36% of responses and changes in legislation & regulation also remains unmoved at #3 with 33% of responses.

Fire, explosion and power blackouts (both #7 with 16% of responses) emerged as two new risks in the top 10.

Cyber incidents remains at #5 at 29%, political risks and violence is unmoved at #6 with 24%, macroeconomic developments is #4 at 31% of responses down from #1 in 2017, business interruption moves down slightly from #8 to #9 with 16% responses and new technologies maintains the 10th position at 11%. The report is published annually by Allianz Global Corporate & Specialty (AGCS), and is based on the insight of a record 1,911 risk experts from 80 countries.

Studies show that corruption is a significant obstacle to business in Nigeria. Companies are very likely to encounter bribery and other corrupt practices.

Corruption also features as a top 10 risk in West African countries, Togo and Ivory Coast, which participated in the survey for the first time.

To provide financial protection for managers against the consequences of actual or alleged “wrongful acts” when acting in the scope of their managerial duties, companies may consider taking up Director & Officers (D&O) insurance.

The D&O policy will pay for defense costs and financial losses. In addition, extensions to many D&O policies also cover costs for managers generated by administrative and criminal proceedings or in the course of investigations by regulators or criminal prosecutors.

The market and economic conditions are improving. “Recently, Nigeria resolved a six-quarter recession and an exchange rate crisis. A better business environment, as well as the recovery of oil prices should help accelerate growth in 2018 to over 2.5% from 0.8% in 2017. However, the inflation persistence to around 12.9% in 2018 may well trigger another depreciation pressure on the Naira,” said Stéphane Colliac, Senior Economist from AGCS sister company, Euler Hermes.

Businesses’ perception of the threat posed by political risks and violence remains relatively unchanged year-on-year. However, respondents are more worried about terrorism. Businesses do not have to be the direct victim to feel the effects. If an attack occurs nearby, the surrounding area may be closed, impacting operations. Globally, a general trend of increased political activism can be anticipated, causing further disruption.

Business interruption (BI) can have a tremendous effect on a company’s revenues. Yet its impact is one of the hardest risks to measure. “No business is too small to be impacted,” says AGCS Africa CEO Thusang Mahlangu, “A severe interruption can even have a terminal impact, particularly for smaller companies. But as many businesses transition from being rich in physical assets to deriving more value from intangibles and services, increasingly, BI is being triggered by non-traditional risk exposures which don’t cause physical damage but result in lost income – so-called nondamage business interruption (NDBI).”

Fire, explosion, which is a major source of BI, is a serious concern for Nigerian businesses, especially considering the many incidents that occurred in 2017. As one of the world’s largest oil and gas producers, the country is highly susceptible to accidental fires that may interrupt power supplies. It is a known fact that power blackouts are prominent in the region. In fact, in a recent outage across the country, the ministry of power blamed it on a fire at a gas pipeline system that interrupted gas supply and affected the national transmission grid. Local businesses should ensure they have a sufficient backup or risk management plan for the production halt.

Cyber incidents through events such as WannaCry and Petya ransomware attacks brought significant financial losses to a large number of businesses. Cyber threats also vary according to company size or industry. “Small companies are likely to be crippled if hit with a ransomware attack, while larger firms are targets of a greater range of threats, such as the DDoS attacks which can overwhelm systems,” says AGCS Cyber Insurance Expert Nobuhle Nkosi.

New technologies rank as the second top risk for the long-term future after cyber incidents globally, with which it is closely interlinked. Vulnerability of automated or even autonomous or self-learning machines to failure or malicious cyber acts, such as extortion or espionage, will increase in future and could have a significant impact if critical infrastructure, such as IT networks or power supply, are involved.

“Although there may be fewer smaller losses due to automation and monitoring minimizing the human error factor, this may be replaced by the potential for large-scale losses, once an incident happens,” explains Michael Bruch, Head of Emerging Trends, AGCS. “Businesses also have to prepare for new risks and liabilities as responsibilities shift from human to machine, and therefore to the manufacturer or software supplier. Assignment and coverage of liability will become much more challenging in future.”

 

 


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Kenya Airways Pays NCAA Sanction over Passenger Rights Violation

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Nigerian Civil Aviation Authority (NCAA) has announced that Kenya Airways has paid the sanction fee imposed on the airline over the infraction on the rights of its Nigerian passenger, Gloria Omisore case and other passengers dating back to February 2025.

According to NCAA’s director of Public affairs and Consumer Protection, Michael Achimugu, the airline made the payment on Wednesday, September 17, 2025, after months of engagements between the NCAA, Kenya Airways, and the Kenyan High Commission in Nigeria.

According to Achimugu, the sanctions were a case-specific penalty and should not be seen as punitive, but rather a measure to ensure airlines strengthen compliance with passenger-handling protocols and safety standards.

NCAA noted, however, that while the airline has complied with payment, the time frame for resolving the underlying issues has already elapsed, stressing that fines alone do not bring such cases to a close.

The case traces back to a viral video in early February 2025, shared by the SA to the Aviation Minister, Tunde Moshood, showing a confrontation at Jomo Kenyatta International Airport in Nairobi. In the footage, Kenya Airways staff denied Ms Gloria Omisore boarding on her connecting flight to Lagos over a visa-related dispute, while the airline later described her as unruly.

The NCAA, however, faulted the handling of the incident, leading to the sanctions now settled.


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LASTMA Deploys Drones to Manage Traffic in Lagos

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Lagos State Traffic Management Authority (LASTMA) has deployed state-of-the-art Unmanned Aerial Vehicles (UAVs) to enhance traffic management, strengthen security surveillance and reinforce public safety across Lagos metropolis.

LASTMA Deploys Drones to Manage Traffic in Lagos

Mr Olalekan Bakare-Oki, general manager of the authority, made this known in a statement on Thursday in Lagos.

Bakare-Oki, said the transition from traditional analog method to advanced digital intelligence harmonised with the visionary mandate of the state government.

He added that “this accentuates the administration’s steadfast dedication to leveraging innovation in pursuit of sustainable urban mobility, heightened safety and operational excellence.

“Through aerial reconnaissance and high-definition monitoring capabilities, the UAVs will empower LASTMA to be proactive in traffic management and control across the state.

“The deployment of device signifies a watershed moment in Lagos’ traffic management ecosystem, seamlessly elevating the authority from conventional reactive enforcement to predictive, intelligence-driven operations.”

Bakare-Oki said the drones would provide real-time aerial oversight, enabling swifter interventions, improved safety outcomes, augmented emergency response coordination, bolstered security frameworks, and the cultivation of a more disciplined motoring culture.

He reassured the public that the deployment would be conducted under stringent adherence to privacy safeguards, ethical standards and regulatory compliance, thereby reinforcing public trust in the system’s transparency and integrity.

“The authority reaffirms its unwavering resolve to continuously innovate in traffic management, reduce travel times, curtail road traffic mishaps, and preserve lives and property throughout Lagos State,” he said.

“This milestone stands as yet another resounding testament to the THEMES+ Agenda of Gov. Sanwo-Olu, wherein technology and innovation serve as indispensable drivers of a safer, smarter, and more habitable Lagos.”

The LASTMA boss maintained that this modern technological intervention would complement LASTMA’s prompt responsiveness to emergencies, accidents and other traffic-related contingencies, in addition to existing LASTMA Toll-Free Hotline — 080000527862.


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Why Elon Musk Halted Sales of Starlink in Lagos, Abuja

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Starlink, the satellite internet provider operated by Elon Musk’s SpaceX, has stopped taking new orders for residential kits in parts of Lagos and in Abuja after network capacity was reached, the company’s online ordering page shows.

starlink

Neighborhoods listed as sold out include Victoria Island, Ikoyi, Lagos Island and Surulere.

Prospective customers in those areas can join a wait list by paying a deposit and will be notified when service space opens.

At Chevyville Estate in Lekki, one resident trying to subscribe was met with a message that read: “Starlink service is currently at capacity in your area. However, you can place a deposit now to reserve your spot on the waitlist and receive a notification as soon as service becomes available again.”

That experience mirrors what consumers in other busy districts are seeing.

A Starlink engineer who spoke on condition of anonymity to discuss internal limits said the company temporarily closes new sales in zones where adding customers would degrade service for existing users.

“It happens when the area cannot take a new customer due to its designed capacity at the time,” the engineer said.

“This also helps preserve a steady connection for people already online.” Remedies can include adding more ground infrastructure, securing regulatory clearances, or expanding satellite coverage.

Since entering Nigeria, Starlink’s monthly fee has climbed: the service began at about N38,000 (roughly $25), rose to about N45,000 ($30) and — by 2025 — was charging roughly N56,000 ($37).

Starlink has cited naira depreciation, higher operating expenses and costs tied to meeting rules set by the Nigerian Communications Commission for the increases.

Those higher prices, and the service interruptions, appear to have affected subscription numbers. After a near eight-month pause that began in November 2024 and was tied to limited bandwidth and regulatory issues, orders resumed in late June 2025.

Still, data from the NCC show active Starlink users in Nigeria fell from 65,564 in the fourth quarter of 2024 to 59,509 in the first quarter of 2025, a decline of more than 6,000 users, or about 9 percent.

Analysts point to the price rises, service holds and economic pressure as key reasons for the drop; some customers have switched to cheaper alternatives or stopped service.

As Elon Musk maintains his position as the world’s richest individual, with a net worth of $429 billion (according to the Bloomberg Billionaires Index), his commitment to global digital inclusion through Starlink remains a central focus.

Starlink’s activity in Nigeria is part of a wider push across Africa.

The company has recently moved to enter markets including Lesotho and Somalia and secured permission to operate in the Democratic Republic of Congo after earlier restrictions,

SpaceX is also working with operators such as Airtel Africa to reach rural areas where wired internet is scarce.

For many users in Nigeria, the appeal of Starlink remains clear: a reliable option where terrestrial networks falter.

But until the company expands capacity or adjusts pricing, consumers in dense urban pockets may have to wait for access or turn to other providers.

 

Credit excluding Headline: Pm News

 

 

 


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