High Stakes Intervention

Abstract

In June 2009, the financial grapevine in Nigeria was rife with reports of public sector debt overhang, margin-loans malaise and possible banking sector collapse. As the Central Bank of Nigeria (CBN) contemplated an official response to the deepening crisis, it was imperative that the CBN’s new helmsman, Sanusi Lamido Sanusi, should have seasoned and trusted advisers to work with him on his impending mission. Habitually, reformers tend to be either traditionalists or progressives, individuals that often challenge and moderate each other’s opinions. For optimum team performance, inherently the most important ingredients are vision and cohesion, the ability to faithfully align behind a robust strategy and to execute conscientiously. In the absence of a standard playbook, the CBN required a novel crisis management approach with the primary goals of delivering the Nigerian banking sector to safe harbour and to ensure that depositors were protected.