Shamsudeen Usman
Encyclopedia
Shamsuddeen Usman is the Minister of National Planning, Chairman of the Steering Committee on Nigeria Vision 2020
and immediate past Finance Minister of Nigeria
. He is an Officer of the Order of the Federal Republic (OFR) and a Member of the Federal Executive Council
, National Economic Council
and the Economic Management Team.
Dr Usman was the first Nigerian Minister to publicly declare his assets before assuming office as a public officer, an act considered as a sign of accountability and transparency in a country noted for its high levels of corruption.
He began his education at Dandago Primary School. After a secondary school education at the prestigious Government College Keffi and King's College, Lagos
, he gained a BSc. in Economics from Ahmadu Bello University
in Zaria
, Nigeria. He later won a National scholarship to study for his MSc. and PhD at the London School of Economics and Political Science http://www.lse.ac.uk/collections/alumniRelations/newsAndPublications/prominentAlumni.htm between 1977 and 1980. During his first two years at the London School of Economics
http://www.lse.ac.uk/collections/alumniRelations/reunionsandevents/2005/0721a.htm, he served as a teaching assistant for the final year class in Public Finance
.
, Bayero University Kano and University of Jos
between 1976 and 1981. He was a Controller at the Nigerian Industrial Development Bank (NIDB) and then served as the Director of Budget/ Special Economic Adviser to the Kano State Government between 1981 and 1985. Usman was then appointed the General Manager of NAL Merchant Bank (currently Sterling Bank
).
and was responsible for the Phase I programme with the task to reform public enterprises, as an integral and critical component of the International Monetary Fund
-led Structural Adjustment Programme (SAP), which was started in 1986.
Under his supervision, about 88 public enterprises were either fully or partially privatised without any foreign technical assistance. The programme succeeded in relieving the government of the huge and growing burden of financing public enterprises, minimised the overstretching of government’s managerial capacity through a redefinition of the role of the supervising ministries, created a large body of shareholders and deepened and broadened the Nigerian Capital Market to the position of being the most developed in black Africa. The market capitalisation of the Nigerian Stock Exchange (NSE) through which the shares were sold has grown from N8.9 billion in 1987 (before privatisation) to N65.5 billion in 1994 (after the Phase-I). The catalytic effect of the volume of shares released into the market via the privatisation exercise cannot be over empahsised.
The TCPC became the current Bureau of Public Enterprises
(BPE) in 1993.
in charge of the International and Investments Sector and due to his strong performance, their biggest rival at the time, Union Bank of Nigeria
appointed him to become their Executive Director and Head of Corporate and International Banking. His time at Union Bank was short-lived as NAL Merchant Bank recruited him to become their Managing Director and Chief Executive Officer
, a post that he kept for over five years. He was also a Member of the Committee on Vision 2010
.
At the return to democracy in Nigeria in 1999, Usman was appointed as the Deputy Governor
of the Central Bank of Nigeria
in charge of Domestic Monetary and Banking Policy, later modified to Financial Sector Surveillance. He was also responsible for heading Project Eagles, the Central Bank of Nigeria
's reform programme, responsible for converting the organisation into one of the most efficient, effective and goal-focused institutions in Nigeria. From January 2004 - June 2007 he was the Deputy Governor of the Central Bank of Nigeria in charge of the Operations Directorate. From 2005, he served as Chairman and then Alternate Chairman of the Nigerian Security Printing and Minting Company Limited
(NSPMC). In this role, he oversaw the introduction of N500 and N1000 notes and the reorganisation of the Mint into a more profitable company with greater operating efficiency.
He has served as the Chairman of the Abuja Stock Exchange
, Nigerian Export Import Bank (NEXIM) and Financial Institutions Training Centre. Dr Shamsuddeen Usman has also served as a President of the Nigerian Economic Society and is a Fellow of the Society. He is also a Board Member of the African Economic Research Consortium and the African Export-Import Bank
.
. Usman introduced a system of performance-based budgeting and pursued various economic reforms such as reducing the average Nigerian Ports Clearing time from approx. 2 months to approx. 14 days during his tenure; increasing the capitalization, trust and effectiveness of the insurance sector together with pursing the implementation of the Insurance Act; cancellation of illegal waivers and concessions which led to revenue leakages of over $2 billion; reducing Nigeria's external debt; and easing customs charges and capital market charges for operators to promote a vibrant and hassle-free environment for investment in the economy.
In times leading to the presentation of the government`s budget by the President (Umaru Musa Yar'Adua
) to the National Assembly, Usman did not enjoy a cordial relationship with a few Members of the Senate and House of Assembly as both, on all occasions during the preparation of the budget, were pushing for increased government spending against Usman's wishes, particularly as the Nation was suffering from dwindling oil revenues. Usman claimed the reason for this is that the Economy of Nigeria
lacked the capacity to take this increased spending, given its deflated revenue base and in order to control inflation
and curtail corruption and improper implementation as in the Power Sector during the Obasanjo administration; this should be avoided. Usman blamed the low level of execution of the 2008 budget partly to the delays caused by the National Assembly in approving the Budget, a statement that the Members of the National Assembly were very unhappy with.
In preparing the 2007 (appropriation), 2008, 2008 (appropriation) and 2009 budgets, Usman also introduced a system of budgeting based on Medium Term Development Plans as opposed to misguided annual budgeting which showed coherency with respect to national development plans in succeeding years, as was done in the past.
In a similar manner to Trevor Manuel
, the previous Finance Minister of South Africa, Usman was appointed as the Minister/Deputy Chairman of the National Planning Commission of Nigeria and as the Chairman of the Steering Committee on Nigeria Vision 2020
in January 2009. In this role, he is responsible for Economic and Developmental Strategy of the Nation through the formulation of a Medium Term National Plan/Policy Framework, a Long-Term National Plan (Nigeria Vision 2020
) and working with the Ministry of Finance to set the overall objectives of the Annual Budget (Short-Term Plan).
He is also responsible for supervising the Monitoring and Implementation of these National Development Plans, the European Development Fund
(EDF) Country Strategy Paper (CSP) and the National Indicative Programme (NIP). As the Minister of National Planning, he also oversees the National Bureau of Statistics
, the Centre for Management and Development and the Nigerian Institute of Social and Economic Research (NISER).
He is also a member of the Presidential Steering Committee on the global financial crisis.
posed very high risks to growth in Nigeria’s oil-dependent economy, and as such pushed for the establishment of a Sovereign Wealth Fund
, which will serve as a long-term saving fund for future generations and also as a development fund for socio-economic projects It was planned to be similar to the Government Pension Fund of Norway. Normally, excess revenue (i.e. actual revenue less budgeted revenue) was saved in the excess crude account, to prevent overheating the economy, though as there is no legal arrangement for the management of the excess crude account, and no mandate for it to be used as a future generations fund, a Sovereign Wealth Fund was necessary to enhance efficiency in the management of the country’s reserves. Usman constituted a Presidential Technical Committee on the Establishment of the Nigeria Sovereign Wealth Fund, which submitted its report to the National Economic Council and the President. However, due to Usman’s redeployment to the Ministry of National Planning, efforts to establish the Sovereign Wealth Fund have been put on hold.
However, on the same morning of the newspaper reports, Usman was the first to be screened by the Senate where he answered a variety of questions on the economy, and answered questions on his performance as a Minister of Finance and National Planning. It was here where he made his famous statements on his battles with the economic mafia in Nigeria who sabotage the government’s revenue generating ability.
individuals driven to resuscitate the economic activity of Kano State especially after the religious conflict in 2004.
He also started Gidauniyar Alheri, an NGO in the Garangamawa area of Kano city that provides human resource development training to youth in Nigeria, and particularly in Kano State. OICI has trained some of their staff in microenterprise development, and they now assist in providing microenterprise training to OICI's Nigeria JOBS beneficiaries. The NGO also comprises The Gidauniyar Alheri Enterprise and Development Centre, Gidauniya Alheri Microfinance Bank Limited and a community hospital. It also plays a huge role in microcredit schemes particularly to women in the local area; IT training and extra-tuition for youths in the local area.
Nigeria Vision 2020
“By 2020 Nigeria will be one of the 20 largest economies in the world, able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena.”Concept...
and immediate past Finance Minister of Nigeria
Finance Minister of Nigeria
The Minister of Finance of Nigeria is a senior cabinet official in the Nigerian Federal Executive Council. The Finance Minister's directs the Nigerian Ministry of Finance and ensures that it operates in a transparent, accountable and efficient manner to bolster the country's economic development...
. He is an Officer of the Order of the Federal Republic (OFR) and a Member of the Federal Executive Council
Federal Executive Council
The Federal Executive Council is the formal body holding executive authority under the Constitution of Australia. It is equivalent to the other Executive Councils in other Commonwealth Realms such as the Executive Council of New Zealand and is equivalent to the Privy councils in Canada and the...
, National Economic Council
National Economic Council
The National Economic Council of the United States is the principal forum used by the President of the United States for considering economic policy matters, separate from matters relating to domestic policy, which are the domain of the Domestic Policy Council...
and the Economic Management Team.
Dr Usman was the first Nigerian Minister to publicly declare his assets before assuming office as a public officer, an act considered as a sign of accountability and transparency in a country noted for its high levels of corruption.
Education and personal life
Shamsuddeen Usman was born to a family living in Warure Quarters of Kano State. His Father, an Islamic scholar, died when he was about six years old.He began his education at Dandago Primary School. After a secondary school education at the prestigious Government College Keffi and King's College, Lagos
King's College, Lagos
King's College, Lagos is a secondary school in Lagos, Lagos State, Nigeria. It was founded on 20 September 1909 with 10 students on its original site at Lagos Island, adjacent to Tafawa Balewa Square. The school admits male students only, although there were some female HSC students before the...
, he gained a BSc. in Economics from Ahmadu Bello University
Ahmadu Bello University
Ahmadu Bello University is the largest university in Nigeria and second largest in Africa, second only to Cairo University, Egypt. It is situated in Zaria. It was founded on October 4, 1962 as the University of Northern Nigeria....
in Zaria
Zaria
Zaria may refer to:*Zaria, a city in Kaduna State, Nigeria*Zaria , or Zoria, the Slavic goddess of beauty*Countess Zaria of Orange-Nassau, Jonkvrouwe van Amsberg, a member of the Dutch royal family...
, Nigeria. He later won a National scholarship to study for his MSc. and PhD at the London School of Economics and Political Science http://www.lse.ac.uk/collections/alumniRelations/newsAndPublications/prominentAlumni.htm between 1977 and 1980. During his first two years at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
http://www.lse.ac.uk/collections/alumniRelations/reunionsandevents/2005/0721a.htm, he served as a teaching assistant for the final year class in Public Finance
Public finance
Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...
.
Work Life
From 1974 to 1976, Usman worked as the Planning Officer for the Kano State Ministry of Economic Planning. He taught Economic Analysis and Public Finance to students in Ahmadu Bello UniversityAhmadu Bello University
Ahmadu Bello University is the largest university in Nigeria and second largest in Africa, second only to Cairo University, Egypt. It is situated in Zaria. It was founded on October 4, 1962 as the University of Northern Nigeria....
, Bayero University Kano and University of Jos
University of Jos
The University of Jos, abbreviated as Unijos, is a federal university in Jos, Plateau State, central Nigeria. The school offers courses in law, medicine, pharmacy, natural sciences, social sciences, the built environment as well as arts and humanities....
between 1976 and 1981. He was a Controller at the Nigerian Industrial Development Bank (NIDB) and then served as the Director of Budget/ Special Economic Adviser to the Kano State Government between 1981 and 1985. Usman was then appointed the General Manager of NAL Merchant Bank (currently Sterling Bank
Sterling Bank
The Sterling Bank of Canada was a Canadian bank that was incorporated in 1905 in Toronto. It no longer operates.- References :* - Mergers and Amalgamations, The Canadian Bank of Commerce...
).
Impact of Privatisation and Commercialisation (Phase I) on Nigerian Economy
From 1989 to 1991 Usman served as the pioneer Director General of The Technical Committee of Privatisation and Commercialisation, now the Bureau of Public EnterprisesBureau of Public Enterprises
The Bureau Of Public Enterprises serves as the secretariat of the National Council on Privatisation and is charged with the overall responsibility of implementing the council's policies on privatization and commercialization...
and was responsible for the Phase I programme with the task to reform public enterprises, as an integral and critical component of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
-led Structural Adjustment Programme (SAP), which was started in 1986.
Under his supervision, about 88 public enterprises were either fully or partially privatised without any foreign technical assistance. The programme succeeded in relieving the government of the huge and growing burden of financing public enterprises, minimised the overstretching of government’s managerial capacity through a redefinition of the role of the supervising ministries, created a large body of shareholders and deepened and broadened the Nigerian Capital Market to the position of being the most developed in black Africa. The market capitalisation of the Nigerian Stock Exchange (NSE) through which the shares were sold has grown from N8.9 billion in 1987 (before privatisation) to N65.5 billion in 1994 (after the Phase-I). The catalytic effect of the volume of shares released into the market via the privatisation exercise cannot be over empahsised.
The TCPC became the current Bureau of Public Enterprises
Bureau of Public Enterprises
The Bureau Of Public Enterprises serves as the secretariat of the National Council on Privatisation and is charged with the overall responsibility of implementing the council's policies on privatization and commercialization...
(BPE) in 1993.
In summary, the Phase-I of the privatisation has given the Nigerian economy some benefits, like:
- Performance of the privatised enterprises so far has led to a considerable increase in the volume of corporate taxes accruing to the national treasury.
- The sale of shares and assets realised over N3.7 billion as gross privatisation proceeds from the privatisation of 55 enterprises whose total original investment according to the records of the Ministry of Financed Incorporated (MOFI) was N652 million. This represents less than 2% of the total value of the Federal Government’s investments as at 30th November 1990 which stood at N36 billion.
- Privatisation has massively expanded personal share ownership in Nigeria
NigeriaNigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
.
- By reducing the reliance of public enterprises on the government for finance, the programme of privatisation has encouraged new investments in the enterprises concerned.
- The new operational autonomy
AutonomyAutonomy is a concept found in moral, political and bioethical philosophy. Within these contexts, it is the capacity of a rational individual to make an informed, un-coerced decision...
of these enterprises and their liberation from political interference in day to day management has improved the internal efficiency of these enterprises allowing them to liberalise their purchasing as well as rationalise labour practices.
- Flotation
FlotationFlotation involves phenomena related to the relative buoyancy of objects. The term may refer to:* Flotation, any material added to the hull of a watercraft to keep the hull afloat...
of shares of privatised enterprises have greatly stimulated the rapid growth of the Nigerian Capital Market and helped to deepen and broaden it.
Banking
Dr Usman was head-hunted to become the Executive Director of United Bank for AfricaUnited Bank for Africa
United Bank for Africa Plc is a public limited company incorporated in Nigeria in 1961 and headquartered in Lagos. It is one of Africa’s leading financial institutions offering universal banking to more than 7 million customers across 750 branches in 19 African countries and a presence in New...
in charge of the International and Investments Sector and due to his strong performance, their biggest rival at the time, Union Bank of Nigeria
Union Bank of Nigeria
Union Bank of Nigeria Plc., commonly known as Union Bank of Nigeria, is a commercial bank in Nigeria.-Overview:Union Bank is a large commercial bank, serving individuals, small and medium-sized companies, as well as large corporations and organizations...
appointed him to become their Executive Director and Head of Corporate and International Banking. His time at Union Bank was short-lived as NAL Merchant Bank recruited him to become their Managing Director and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
, a post that he kept for over five years. He was also a Member of the Committee on Vision 2010
Vision 2010
Vision 2010 is a projected economic plan for Nigeria to improve economically. Nigeria is a lesser developed country, whose politics have been shaped by chronic military dictatorships, dependence on oil, ethnic and social cleavages, and a population too large to feed...
.
At the return to democracy in Nigeria in 1999, Usman was appointed as the Deputy Governor
Deputy Governor
A Deputy governor is a gubernatorial official who is subordinated to a governor, rather like a Lieutenant governor.-British colonial cases:In the British empire, there were such colonial offices in :...
of the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
in charge of Domestic Monetary and Banking Policy, later modified to Financial Sector Surveillance. He was also responsible for heading Project Eagles, the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
's reform programme, responsible for converting the organisation into one of the most efficient, effective and goal-focused institutions in Nigeria. From January 2004 - June 2007 he was the Deputy Governor of the Central Bank of Nigeria in charge of the Operations Directorate. From 2005, he served as Chairman and then Alternate Chairman of the Nigerian Security Printing and Minting Company Limited
Nigerian Security Printing and Minting Company Limited
The Nigerian Security Printing and Minting Company Limited Plc is the Nigerian banknote printer and mint. It is located in both Abuja and Lagos and is majority-owned by the government of Nigeria....
(NSPMC). In this role, he oversaw the introduction of N500 and N1000 notes and the reorganisation of the Mint into a more profitable company with greater operating efficiency.
He has served as the Chairman of the Abuja Stock Exchange
Abuja Stock Exchange
Abuja Stock Exchange was set up in 2000 and went live in 2001. It was the first exchange in Nigeria to provide electronic trading, clearing and Settlement for both the primary market as well as secondary markets. It was set up to trade in equities, unlisted stocks and plain vanilla bonds.Soon...
, Nigerian Export Import Bank (NEXIM) and Financial Institutions Training Centre. Dr Shamsuddeen Usman has also served as a President of the Nigerian Economic Society and is a Fellow of the Society. He is also a Board Member of the African Economic Research Consortium and the African Export-Import Bank
African Export-Import Bank
The African Export Import Bank is an International bank headquartered in Cairo, Egypt. It was established in 1993 by African governments, African private and institutional investors, as well as non-African financial institutions and private investors for the purpose of financing and promoting...
.
Economy and finance
Dr Usman was appointed as the Minister of Finance of Nigeria from May 2007 - January 2009. In this role, he served as the Head of the Economic Management Team and as the Vice Chairman of the National Council on PrivatisationNational Council on Privatisation
The National Council on Privatization is a think tank sponsored by the Nigerian government to determine the political, economic and social objectives of the privatization and commercialization of Nigeria's public enterprises....
. Usman introduced a system of performance-based budgeting and pursued various economic reforms such as reducing the average Nigerian Ports Clearing time from approx. 2 months to approx. 14 days during his tenure; increasing the capitalization, trust and effectiveness of the insurance sector together with pursing the implementation of the Insurance Act; cancellation of illegal waivers and concessions which led to revenue leakages of over $2 billion; reducing Nigeria's external debt; and easing customs charges and capital market charges for operators to promote a vibrant and hassle-free environment for investment in the economy.
In times leading to the presentation of the government`s budget by the President (Umaru Musa Yar'Adua
Umaru Musa Yar'Adua
Umaru Musa Yar'Adua was the President of Nigeria and the 13th Head of State. He served as governor of Katsina State in northern Nigeria from 29 May 1999 to 28 May 2007. He was declared the winner of the controversial Nigerian presidential election held on 21 April 2007, and was sworn in on 29 May...
) to the National Assembly, Usman did not enjoy a cordial relationship with a few Members of the Senate and House of Assembly as both, on all occasions during the preparation of the budget, were pushing for increased government spending against Usman's wishes, particularly as the Nation was suffering from dwindling oil revenues. Usman claimed the reason for this is that the Economy of Nigeria
Economy of Nigeria
The economy of Nigeria is a middle income, mixed economy emerging market with well-developed financial, legal, communications, transport, and entertainment sectors...
lacked the capacity to take this increased spending, given its deflated revenue base and in order to control inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
and curtail corruption and improper implementation as in the Power Sector during the Obasanjo administration; this should be avoided. Usman blamed the low level of execution of the 2008 budget partly to the delays caused by the National Assembly in approving the Budget, a statement that the Members of the National Assembly were very unhappy with.
In preparing the 2007 (appropriation), 2008, 2008 (appropriation) and 2009 budgets, Usman also introduced a system of budgeting based on Medium Term Development Plans as opposed to misguided annual budgeting which showed coherency with respect to national development plans in succeeding years, as was done in the past.
In a similar manner to Trevor Manuel
Trevor Manuel
Trevor Andrew Manuel is a South African politician, currently serving in the Cabinet of South Africa as Minister in the Presidency in charge of the National Planning Commission...
, the previous Finance Minister of South Africa, Usman was appointed as the Minister/Deputy Chairman of the National Planning Commission of Nigeria and as the Chairman of the Steering Committee on Nigeria Vision 2020
Nigeria Vision 2020
“By 2020 Nigeria will be one of the 20 largest economies in the world, able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena.”Concept...
in January 2009. In this role, he is responsible for Economic and Developmental Strategy of the Nation through the formulation of a Medium Term National Plan/Policy Framework, a Long-Term National Plan (Nigeria Vision 2020
Nigeria Vision 2020
“By 2020 Nigeria will be one of the 20 largest economies in the world, able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena.”Concept...
) and working with the Ministry of Finance to set the overall objectives of the Annual Budget (Short-Term Plan).
He is also responsible for supervising the Monitoring and Implementation of these National Development Plans, the European Development Fund
European Development Fund
The European Development Fund is the main instrument for European Union aid for development cooperation in Africa, the Caribbean, and Pacific countries and the Overseas Countries and Territories...
(EDF) Country Strategy Paper (CSP) and the National Indicative Programme (NIP). As the Minister of National Planning, he also oversees the National Bureau of Statistics
National Bureau of Statistics
National Bureau of Statistics may refer to:*National Bureau of Statistics of China*National Bureau of Statistics of Moldova*National Bureau of Statistics of Nigeria*National Bureau of Statistics of Tanzania*Australian Bureau of Statistics...
, the Centre for Management and Development and the Nigerian Institute of Social and Economic Research (NISER).
He is also a member of the Presidential Steering Committee on the global financial crisis.
Notable accomplishments as Minister of National Planning from January 2009 to March 2010
- Created the Nigeria Vision 2020Nigeria Vision 2020“By 2020 Nigeria will be one of the 20 largest economies in the world, able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena.”Concept...
document with input from a wide variety of stakeholders (e.g. Youth, States, Women, Engineers, People with Disabilities) - National Strategy for the Development of Statistics which is to generate data for national planning
- Developed a national framework which is to be used for the evaluation of Ministries, Departments and Agencies’ performance
- An evaluation of the 7-point agenda and other government policies
- Four-year implementation plan for the Vision 2020 document
- A medium-term expenditure framework on which the national budget is based
Nigeria Sovereign Wealth Fund
In the years preceding 2008, Nigeria benefitted from the surge in oil prices, which allowed the government to build up excess reserves and increase public expenditure. However, Usman had identified that oil price volatilityVolatility (finance)
In finance, volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices...
posed very high risks to growth in Nigeria’s oil-dependent economy, and as such pushed for the establishment of a Sovereign Wealth Fund
Sovereign wealth fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
, which will serve as a long-term saving fund for future generations and also as a development fund for socio-economic projects It was planned to be similar to the Government Pension Fund of Norway. Normally, excess revenue (i.e. actual revenue less budgeted revenue) was saved in the excess crude account, to prevent overheating the economy, though as there is no legal arrangement for the management of the excess crude account, and no mandate for it to be used as a future generations fund, a Sovereign Wealth Fund was necessary to enhance efficiency in the management of the country’s reserves. Usman constituted a Presidential Technical Committee on the Establishment of the Nigeria Sovereign Wealth Fund, which submitted its report to the National Economic Council and the President. However, due to Usman’s redeployment to the Ministry of National Planning, efforts to establish the Sovereign Wealth Fund have been put on hold.
Re-nomination: battle with the Mafia and local politicians
Following the dissolution of the cabinet by Acting President, Goodluck Jonathan, Usman was one of nine out of a total of 42 ministers re-nominated to serve as a government Minister in the new cabinet. This was due to his neutrality on political issues and good working relationship with the Acting President. Usman’s re-nomination was not viewed favorably by members of the Kano State PDP chapter, as they perceived Usman to be a technocrat and not a politician, and as such would not serve the self-interests of the People’s Democratic Party in Kano State. This led to political lobbying from several interest groups to prevent his nomination. As a result, the Presidency instructed the Senate to delay his screening, and by the next morning, the local newspapers were reporting that he had been dropped as a Minister due to political interests against his appointment as a Technocrat.However, on the same morning of the newspaper reports, Usman was the first to be screened by the Senate where he answered a variety of questions on the economy, and answered questions on his performance as a Minister of Finance and National Planning. It was here where he made his famous statements on his battles with the economic mafia in Nigeria who sabotage the government’s revenue generating ability.
- “I had taken on so many mafia; I had taken on the customs mafia, I had taken on the tax concession mafia who are draining this country out of its revenues. Everybody knows the Committee I set up under Senator Udoma saved this country billions of naira. I took on the oil importation mafia; I took on the ports system mafia because I was trying to achieve 48 hours clearance."
Philanthropy
Dr Shamsuddeen Usman is the Chairman and one of the founding members of the Kano Peace and Development Initiative (KAPEDI), a group of concerned indigenes of Kano StateKano State
Kano State is a state located in North-Western Nigeria. Created on May 27, 1967 from part of the Northern Region, Kano state borders Katsina State to the north-west, Jigawa State to the north-east, Bauchi State to the south-east and Kaduna State to the south-west...
individuals driven to resuscitate the economic activity of Kano State especially after the religious conflict in 2004.
He also started Gidauniyar Alheri, an NGO in the Garangamawa area of Kano city that provides human resource development training to youth in Nigeria, and particularly in Kano State. OICI has trained some of their staff in microenterprise development, and they now assist in providing microenterprise training to OICI's Nigeria JOBS beneficiaries. The NGO also comprises The Gidauniyar Alheri Enterprise and Development Centre, Gidauniya Alheri Microfinance Bank Limited and a community hospital. It also plays a huge role in microcredit schemes particularly to women in the local area; IT training and extra-tuition for youths in the local area.
Awards
- ThisDay Minister of the Year 2007
- Vanguard Banker's Award: Banking Icon http://allafrica.com/stories/200803250273.html
- Honorary Fellow, Chartered Institute of Bankers of NigeriaChartered Institute of Bankers of NigeriaThe Chartered Institute of Bankers of Nigeria is the umbrella professional body for bankers in Nigeria.The CIBN was incorporated in 1976 as the Nigerian Institute of Bankers.It was chartered in 1990, and is now covered by the CIBN Act 5 of 2007....
(CIBN) http://allafrica.com/stories/200805121279.html - ThisDay Tomorrow's 50 Leaders (2004) http://www.thisdayonline.com/archive/2003/12/07/20031207cov07.html
- Fellow, Nigerian Economic Society
External links
- Vision 2020 Concept
- NPC News
- List of retired Central Bank of Nigeria Board of Directors
- Oxford Entrepreneurs Africa Event
- Article on Re-inventing Nigeria
- Ministry of Finance Profile
- Dr Shamsuddeen Usman at LSE
- Nigeria's Political Leadership
Relevant presentations and press briefings
- Statement at IMF Meeting representing Africa Group
- IMF Meeting Document
- 2008-2010 Nigeria Financial Strategy Presented to the Nigeria Economic Summit Group
- Review of Development Assistance to Nigeria
- Fiscal Policy Developments presented to the Nigerian Economic Summit Group
- Nigeria: Scorching the Resource Curse- Lecture at the London School of Economics and Political Science