By Providence Obuh
The Managing Director of GTBank Asset Management Limited, Mr. Nicholas Nyamali has blamed the crisis faced in the Nigerian economy on poor managerial and administrative skills in managing issues in the corporate and public sectors of the country.
Speaking at the Institute of Chartered Secretaries and Administrators of Nigeriaâ€™s (ICSAN) First Quarter, 2010 Business Meeting, Nyamali likened the situation in Nigeria to Johnson and Johnsonâ€™s Tylenol crises, Ford and Firestone Tyre and Rubber Company and the Exxon Valdez Oil Spill crisis which was not managed until it became too late for them to handle, with dire consequences for the economy of the various countries.
He said, â€œLooking at it from the Nigerian scene, what Lamido Sanusi, Governor of central Bank of Nigeria (CBN) did was a check on the sharp practices in banks. Despite the fact that the tension in banks has subsided, nevertheless, the current crisis facing corporate Nigeria is indicative of the absence of effective crisis management responses from administrators in the affected organisation, without regard to the causes of the crisis.
â€œIt is pertinent that administrators recognise their responsibilities in anticipating, preventing and managing them, as administrators will need to undergo mind shift, develop organisation-wide systems and processes, as well as direct their organisations responses during crises.â€
Nyamali noted that the challenging times the Nigerian companies are facing presently, should not be new or news to anyone.
He advised that administrators must assume responsibilities and develop and work in line with these three principles, â€œI am responsible, prevention is better than cure, and lets be proactive and transparent,â€ he stated.
He added that administrators must be proactive and transparent in dealing with crisis situations and adopt a mind set that will see to the establishment of adequate risk and crisis management frameworks within the organisation to prevent, minimise and deal with corporate crisis.
â€œIn order to manage public perception and response to the companiesâ€™ business operation,â€ Nyamali maintains, â€œAn administrator should strive to promote corporate image of the organisation which is foremost to them and must be conscious of the different level of crises which could be natural, technological and also could arise through organisational misdeeds were actions taken by management will harm or place stakeholders at risk.â€
â€œAnd were adequate precaution is not taken,â€ he said, â€œThe result is failure in corporate governance standards.â€