Race to the line for new Nigeria central bank chief
* Risk management expert Sanusi seen as favourite
* Incumbent Soludo mounting final bid for second term
* Choice will help dictate speed of economic reform
LAGOS, May 27 (Reuters) - Nigerian President Umaru Yar'Adua is due to name a new central bank chief by the end of the week but intense lobbying by rival factions means the race is going down to the line.
Lamido Sanusi, managing director of First Bank (FBNP.LG) and a member of Nigeria's northern elite, is widely seen as the favourite to replace current governor Chukwuma Soludo, whose five-year term -- which is renewable -- ends on Friday.
But Soludo has mounted a rearguard campaign over the last few weeks, overseeing a revival in investor confidence in Africa's most populous nation and seeking support for his re-appointment from senators in his native southeast.
Those close to the decision-making say the situation is fluid, with Yar'Adua being lobbied strongly in different directions and the Senate able in theory to reject his choice.
"Mr. President will be forwarding the name of Lamido Sanusi to the Senate as the new central bank governor," one source in the presidency told Reuters at the weekend. He had previously said Soludo was sure to gain a second term and has declined to comment in recent days as lobbying intensified.
In the event that Yar'Adua does not send a name to the Senate by Thursday, Soludo is likely to be asked to hand over to his most senior deputy for an interim period. Friday is a national holiday in Nigeria and the Senate will not be sitting.
The appointment comes at an important time for Nigeria, sub-Saharan Africa's second-biggest economy and its biggest crude oil producer.
Economic reforms, broadly aimed at making monetary policy more responsive to the markets, have been stalled by political interference and the global downturn. Investors want to see them back on track and the banking sector cleaned up.
TALE OF TWO REFORMERS
Sanusi took over the helm of First Bank, Nigeria's oldest bank, in January after serving as head of risk management, where he built a reputation for strong corporate governance and conservative lending, marking him out from some of his peers. Continued...
