Nigerian companies are bracing for a surge in fraud cases, with new data indicating the country is set to experience the highest rates of both internal and external fraud in Sub-Saharan Africa.
Key findings from the World Security Report, commissioned by Allied Universal and G4S, reveal that a combination of economic pressures and heightened security threats is driving significant changes in corporate security strategies nationwide.
The report, which surveyed 58 security chiefs in Nigeria, shows an alarming expectation of financial crime:
- External Fraud: Half (50%) of Nigerian security chiefs anticipate facing external fraud in the next year (compared to a 40% regional average).
- Insider Fraud: 41% expect to be impacted by insider fraud.
- Driver: The primary catalyst for intentional insider threats is financial dissatisfaction (low pay, lack of bonuses). 55% of Nigerian CSOs cite this as the top driver, the highest rate globally alongside Kenya (36% global average).
Reinforcing the financial motivation behind these threats, economic instability is expected to surge. Nearly half of Nigerian security chiefs (47%) predict economic instability will be a security-impacting hazard next year, up from 40% last year.
Jonas Ahl, Managing Director of G4S Nigeria, noted that while financial pressures make fraud pervasive, Nigeria remains a country of opportunity. He stressed the need for “Real-time information and intelligence gathering… particularly as the risks differ depending on which part of the country you are in.”
Beyond financial crime, Nigerian executives face heightened personal and physical risks.
- Threat to Executives: 33% of security chiefs report that the threat of violence towards company executives has soared in the last two years. This is a shared concern among global institutional investors, many of whom attribute 30% or more of a company’s value to the contributions of its senior leadership.
- Activist Groups: Nigeria also faces a growing threat from activist groups. 86% of security chiefs say these groups increasingly pose a physical security risk to corporate facilities and executives, a rate higher than anywhere else in the region.
- Civil Unrest: Nearly a third of businesses view civil unrest as a top hazard for the coming year. Protests and demonstrations are predicted to impact 17% of Nigerian companies, significantly above the global average of 10%.
In a direct response to this multi-faceted threat landscape, companies in Nigeria are planning unprecedented investment in security.
A staggering 90% of security chiefs in Nigeria say their physical security budget will increase in the next year. This is the highest rate globally, surpassing the regional average of 81% and the global average of 66%.
Christo Terblanche, Regional President of G4S in Africa, called the planned investment in smart security infrastructure and AI-powered video surveillance “encouraging,” stating that despite the challenges, opportunities across the region are plentiful.
The World Security Report surveyed 2,352 Chief Security Officers from medium and large global companies across 31 countries to assess the current and future threat landscape.