CRMI Alerts Stakeholders to Geo-Economic Risks After UAE’s Exit from OPEC
By Core Reporters
The Chartered Risk Management Institute of Nigeria (CRMI) has issued a policy advisory following the decision by the Organization of the Petroleum Exporting Countries to accept the exit of the United Arab Emirates, effective May 1, 2026.
The advisory was contained in a statement signed by the Registrar and Chief Executive Officer of the Chartered Risk Management Institute of Nigeria, Victor Olannye.
According to Olannye, the development marks a significant shift in global oil governance and could trigger increased market volatility, geopolitical tensions and disruptions across energy supply chains.
He said CRMI is advising corporate members, public sector institutions, financial institutions and individual risk professionals to reassess their risk management strategies and strengthen institutional resilience.
Olannye identified the key risks arising from the development to include a possible weakening of OPEC’s internal cohesion, heightened oil price volatility, geopolitical instability, energy supply chain disruptions, macroeconomic uncertainty and the risk of further exits by other member states.
On the implications for Nigeria, he said the development could create opportunities for increased production flexibility, potential market share expansion and improved revenue prospects.
He, however, cautioned that Nigeria also faces significant risks, including exposure to oil price volatility, reduced supply management protection, heightened competition and possible fiscal instability.
As part of its policy recommendations, CRMI urged corporate organisations to strengthen risk management frameworks, adopt dynamic hedging strategies and diversify business portfolios.
The institute also advised financial institutions and investors to reassess energy-related exposures, strengthen portfolio diversification and improve risk disclosure practices.
For the public sector and policymakers, CRMI called for stronger fiscal buffers, accelerated economic diversification and greater commitment to renewable energy transition.
Olannye added that individual risk professionals should build capacity in geopolitical risk analysis and energy economics, while developing expertise in scenario planning and predictive analytics.
He said CRMI expects possible future scenarios to include fragmentation of global oil governance structures, more market-driven oil pricing mechanisms and faster global energy transition initiatives.
The institute urged stakeholders across sectors to proactively reposition their strategies to navigate the evolving geo-economic environment.
