Shamsuddeen Usman

Shamsuddeen Usman
Born	(1949-09-18) September 18, 1949 Warure Quarters, Kano State, Nigeria
Occupation(s)	Economist, banker, technocrat, public official
Known for	Nigerian Minister of Finance (2007–2009), Minister of National Planning (2009–2013), Chairman of Citibank Nigeria Limited

Shamsuddeen Usman, born on 18 September 1949, is a distinguished Nigerian economist, banker, technocrat, and public official. He leads SUSMAN & Associates, a consulting firm specializing in economics, finance, and management headquartered in Nigeria. Usman held the position of Nigeria’s Finance Minister from June 2007 until January 2009, followed by his role as Minister of National Planning from January 2009 to September 2013. Additionally, he serves as the Chairman of Citibank Nigeria Limited.

In his capacity as Minister of National Planning, Usman was instrumental in crafting Nigeria's long-term development agenda, notably including Nigeria Vision 2020 and the National Integrated Infrastructure Master Plan. While overseeing both Finance and Planning ministries, he presided over the Nigerian National Economic Management Team.

Usman acted as Nigeria’s representative on the Governing Boards of both the World Bank and the International Monetary Fund. His public service also encompassed membership in the Federal Executive Council, National Economic Council, and National Council on Privatization.

Significantly, he was the inaugural Nigerian Minister to publicly disclose his assets prior to assuming office, exemplifying a dedication to transparency in a nation grappling with corruption challenges.

Background

Originating from Warure Quarters in Kano State, Usman lost his father—an Islamic scholar—around the age of six. His early education began at Dandago Primary School, followed by attendance at Government College Keffi and King's College, Lagos. He obtained a Bachelor of Science degree in Economics from Ahmadu Bello University in Zaria, Nigeria. Awarded a national scholarship, he pursued his MSc and PhD studies at the London School of Economics and Political Science between 1977 and 1980. His doctoral research concentrated on "Tax Incentives and Investment in the Nigerian Oil Industry." During his initial two years at LSE, he served as a teaching assistant for the final-year Public Finance course.

Early career

Between 1974 and 1976, Usman was employed as a Planning Officer within Kano State’s Ministry of Economic Planning. From 1976 to 1981, he lectured on Economic Analysis and Public Finance at Ahmadu Bello University, Bayero University Kano, and University of Jos. He later held the position of controller at the Nigerian Industrial Development Bank (NIDB) before becoming Director of Budget and Special Economic Adviser to the Kano State Government from 1981 to 1983. Subsequently, he advanced to General Manager of NAL Merchant Bank (currently Sterling Bank).

Impact of Privatisation and Commercialisation on the Nigerian Economy

Usman served as the inaugural Director General of The Technical Committee on Privatisation and Commercialisation (now known as the Bureau of Public Enterprises) from 1989 until 1991. He spearheaded Phase I of this initiative aimed at reforming state-owned enterprises under the IMF-led Structural Adjustment Programme (SAP) launched in 1986.

During his tenure, approximately 88 public enterprises underwent full or partial privatisation without reliance on foreign technical expertise. This initiative alleviated fiscal pressures on government budgets, refined oversight functions, broadened shareholder participation, and substantially deepened Nigeria’s Capital Market—the most advanced among black African nations at that time. Market capitalisation on the Nigerian Stock Exchange (NSE) expanded from N8.9 billion in 1987 to N65.5 billion by 1994 following completion of Phase I. The shares introduced through privatisation were a key driver behind this expansion. The TCPC transitioned into the Bureau of Public Enterprises (BPE) in 1993.

Phase I not only enhanced operational efficiency within privatised entities but also increased corporate tax contributions. Proceeds from share sales and asset disposals amounted to over N3.7 billion gross revenue generated from 55 enterprises initially valued at N652 million by the Ministry of Finance Incorporated (MOFI). This valuation represented less than 2% of the Federal Government’s total investment portfolio valued at N36 billion as of November 1990. The privatisation process expanded individual share ownership across Nigeria.

By decreasing dependence on government funding for public enterprises, privatisation stimulated fresh investments and granted greater managerial independence. These entities experienced improved internal productivity, embraced commercial operations, adopted private-sector management practices, and optimized labor arrangements free from political constraints. Furthermore, share issuance accelerated rapid growth and deepening within Nigeria’s Capital Market.

Banking

In 1992, Usman was appointed executive director at United Bank for Africa, where he managed the International and Investments Sector along with the New York Branch. The following year, he took on the role of executive director and head of Corporate and International Banking at Union Bank of Nigeria. By 1994, he advanced to managing director and CEO of NAL Merchant Bank, a leadership position he maintained for more than five years. He also played a role in the Committee on Vision 2010.

Following Nigeria’s democratic transition in 1999, Usman was named Deputy Governor of the Central Bank of Nigeria (CBN), initially overseeing Domestic Monetary and Banking Policy before assuming responsibility for Financial Sector Surveillance. He spearheaded Project Eagles, a reform initiative that significantly enhanced the operational efficiency of the CBN. Between 2004 and 2007, he held the Deputy Governor position in charge of the Operations Directorate. Starting in 2005, he chaired the Nigerian Security Printing and Minting Company Limited (NSPMC), guiding the introduction of N500 and N1000 currency notes while boosting the Mint’s profitability and operational effectiveness.

Usman also served as chairman for several institutions including the Abuja Stock Exchange, Nigerian Export-Import Bank (NEXIM), and the Financial Institutions Training Centre. He is recognized as a fellow and was president of the Nigerian Economic Society (NES) from 1986 to 1987. His board memberships extended to organizations such as the African Economic Research Consortium and the African Export-Import Bank.

Ministerial career

From May 2007 until January 2009, Usman held the position of Nigeria’s Minister of Finance, heading the Economic Management Team and serving as Vice Chairman of the National Council on Privatisation. During his tenure, he introduced performance-based budgeting and executed reforms that reduced Nigerian Ports’ clearance times from approximately two months to around fourteen days. His leadership contributed to enhanced capitalization and confidence within the insurance sector, eliminated illicit waivers responsible for a $2 billion revenue shortfall, lowered external debt levels, and eased customs as well as capital market fees to encourage investment.

While preparing budgets under President Umaru Musa Yar'Adua, Usman encountered resistance from certain National Assembly members advocating for increased expenditure despite falling oil revenues. He maintained that Nigeria’s economy lacked the capacity to sustain higher spending without triggering inflation or corruption, highlighting delays in budget approval as a factor impeding effective implementation.

Usman replaced traditional annual budgeting with Medium Term Development Plans covering 2007–2009 budgets, aligning fiscal strategies with long-range national development objectives.

In January 2009, he assumed the role of minister/deputy chairman at the National Planning Commission of Nigeria and chaired the Steering Committee on Nigeria Vision 2020. His responsibilities included directing national economic strategy through medium- and long-term planning, coordinating budget goals with the Ministry of Finance, and overseeing progress monitoring. Additionally, he managed collaborations with international partners like the European Development Fund (EDF) and supervised agencies such as the National Bureau of Statistics of Nigeria, Centre for Management and Development, and NISER.

Sanusi Lamido Sanusi acknowledged Usman as an influential figure whose economic policies helped cushion recession effects. Furthermore, Usman participated in the Presidential Steering Committee formed to address challenges arising from the 2008 financial crisis.

Minister of National Planning (January 2009 to September 2013)

During his term as Minister of National Planning, Usman:

• Spearheaded the creation of the Nigeria Vision 2020 document, incorporating perspectives from a broad range of groups such as youth, regional representatives, women, engineers, and persons with disabilities
• Initiated the National Strategy for the Development of Statistics to enhance evidence-based planning nationwide
• Designed a performance assessment framework for Ministries, Departments, and Agencies (MDAs)
• Oversaw reviews of the 7-point agenda alongside other governmental policy initiatives
• Crafted a detailed four-year roadmap to implement Vision 2020
• Developed a medium-term expenditure framework that formed the foundation of the national budgeting process

Post-Ministerial career

Following his ministerial service, Usman broadened his leadership roles across sectors including finance, healthcare, education, and natural resources through influential board memberships.

In 2015, he was appointed Chairman of Union Trustees Management Services Ltd and Songhai Health Trust Ltd. His leadership in education expanded as he took on Chairmanship of Greensprings Educational Services Ltd in 2017 and Rainbow Educational Services Ltd in 2018.

His involvement in healthcare and natural resource management deepened with his 2019 appointments as Chairman of Nisa Premier Hospitals and African Natural Resources and Mines Ltd. That same year, he joined Emzor Pharmaceutical Industries Ltd’s board as a Director.

Within the financial sector, Usman became an Independent Non-Executive Director on Citibank Nigeria Ltd’s board in 2017 and was promoted to Chairman in 2022.

In 2023, he assumed the Chairmanship of the Ministry of Finance Incorporated (MOFI), overseeing Nigeria’s federal government investment portfolio.

These leadership positions reflect Dr. Usman’s ongoing contributions to Nigeria’s socio-economic progress through strategic governance across diverse industries.

Nigeria Sovereign Wealth Fund

Before 2008, Nigeria experienced a surge in oil revenues that boosted reserves and government expenditure. Aware of the risks posed by oil price fluctuations to an economy heavily reliant on petroleum, Usman championed the creation of a sovereign wealth fund aimed at securing savings for future generations and supporting socio-economic development projects, drawing inspiration from Norway’s Government Pension Fund model.

Previously, surplus revenues were held in the Excess Crude Account without formal legal protection or obligations toward future generations. To enhance management efficiency of these reserves, Usman established a Presidential Technical Committee tasked with laying the groundwork for the Nigeria Sovereign Wealth Fund. This committee submitted its findings to the National Economic Council and President. Nonetheless, his transfer to the Ministry of National Planning curtailed his direct role in finalizing the fund’s establishment.

Ministerial screening

After acting president Goodluck Jonathan dissolved the cabinet on February 10, 2010, Usman was among nine ministers re-nominated out of forty-two due to his nonpartisan stance and positive relationship with the president. However, members of Kano State’s PDP opposed his reappointment, perceiving him more as a technocrat than a political figure. Their lobbying efforts delayed his confirmation process. Local press speculated that political opposition had led to his exclusion from initial consideration.

Despite these challenges, Usman was the first minister to undergo Senate screening that morning. During his session, he responded to inquiries regarding economic matters as well as his accomplishments while serving as Minister of Finance and National Planning. He emphasized his proactive measures against economic sabotage by various "mafias" that threatened government revenue streams.

Philanthropy

Usman serves as the chairman and a founding member of the Kano Peace and Development Initiative (KAPEDI), an organization dedicated to fostering peace and economic recovery in Kano State following the religious unrest of 2004.

He is also the founder of Gidauniyar Alheri, a non-governmental organization based in Kano city that offers youth training in human resource development alongside various charitable programs. Founded on August 17, 2002, Gidauniyar Alheri Community Services operates across ten wards within the Gwale local government area, implementing projects aimed at combating poverty, illiteracy, and healthcare challenges. Over the past decade, its Community Health Centre has provided free medical treatment to more than 200,000 individuals, contributing significantly to lowering maternal and infant mortality rates in Kano.

Moreover, Usman leads the Kano-Jigawa professional forum as its chairman. Established in 2018, this forum seeks to advance professional education for young people in both Kano and Jigawa states. Its leadership team comprises former national heads of various professional bodies.

Awards

• This Day Minister of the Year (2007)
• Vanguard Banker's Award: Banking Icon
• Honorary Fellow of the Chartered Institute of Bankers of Nigeria (CIBN)
• This Day Tomorrow's 50 Leaders (2004)
• Fellow of the Nigerian Economic Society
• Third place National Winner, John F. Kennedy Essay Competition (1969)
• Fellow of the Society for Corporate Governance Nigeria
• Officer of the Order of the Federal Republic (OFR)
• Commander of the Order of the Niger (CON)

Publications

• Shamsuddeen Usman (September 2024). Public Policy And Agent Interests, Bookcraft