CBN Naira Crises – a Failure of Project Management?

In recent years, the Nigerian Central Bank seems to have been chalking up series of failed projects to its name. Its several initiatives to sustain the naira at the forex window have been counterproductive to say the least. The adoption of the CBN digital currency also seems to have missed the mark and the initiative quietly put to rest. In the midst of a lingering fuel crises, and on the eve of critical national elections, the Bank has thrown the entire country, including its commerce and industry into an unprecedented currency crises, whose end is not yet insight. As if it's habitual, it just launched a novel consumer debit card that is already looking like dead on arrival.

Contemporary project management goes beyond deliverables such as cost and time, to focus on value to stakeholders, which in this case, are the 200m Nigerians impacted by the naira policy. A project that delivers negative returns to its stakeholders is absurd to contemplate and costly in its implications.?If it brings no benefits to its stakeholders it is of no value and qualifies for a failed project.

Principles guide behaviour and it is no different with projects. There are certain project management principles that enable value capture from projects. The raging hue and cry across the land suggest a neglect of such principles by the banks' project handlers.

Consider the principle of stewardship for example. If Governor Emiefele and his team saw themselves as stewards of Nigeria's economy, which they are, they would have been more circumspect and prudent in committing the whole nation to an exercise that carries so much disruptive potentials. Stewardship requires that project sponsors, managers, and team members act responsibly and with integrity, care, and trustworthiness. Stewards demonstrate commitment to the financial, social, and environmental impacts of the projects they undertake.

With what is on ground, the Governor and his team do not seem to have demonstrated the least sense of stewardship of Nigeria's resources and entrusted to them. It may also seem that the handlers grossly underestimated the complexities of rolling out this initiative.?Their assurances of all is well have not been supported by the realities on ground. Besides, their planning seems to have been less than great, while the risks were inaccurately anticipated, considering the lame responses so far.

Therefore, that this project is failing is backed by evidence across the land. The losses to the economy are likely unquantifiable to say the least. Think of the wasted man hours for all cadres of Nigerians in search of naira notes, like they are searching for water in drought-stricken regions. Think of the reduced trade volumes. Think of the social disruptions, enabling the ridiculous situation where the naira now has its own black market in-country.

It needs to be said that the proclivity for delivering failed government projects has become a testament to the endemic corruption burrowing at the soul of this nation. The new airport in Lagos has been largely idle because somebody failed to plan for the right size of apron needed. To think that the airport was built with Chinese loans means the that repayment strategy has already been impaired.

In the end, the crises trailing the current naira redesign is an opportunity to capture lessons learnt for better value delivery in subsequent projects. This is not only at the apex bank, but across all government establishments, as stewards of Nigeria’s scarce and dwindling resources.