Kasimu: Development Through Banking
S.Y. Kasimu, managing director/chief executive officer, Nigerian Industrial Development Bank Limited, has pushed the operations of the bank to great heights since he assumed the position in the early 1990s. Kasimu has pursued the dreams of the founders of NIDB "to serve as a dedicated window for channelling funds from within and outside the country to the young nation state's industrial sector." NIDB was set up in 1964 as a development finance institution to provide medium and long-term finance, and at times equity investments to manufacturing, non-petroleum, mining and tourism sectors of the economy.
Kasimu has made great success of this endeavour. By the end of 1996, the development bank had a total asset of N7.1 billion, loan and debentures of N3.96 billion, and long-term loans of N2.68 billion. Though not a profit making venture, through prudent management of its risk assets, it generated gross earnings of N913.11 million and profit before tax of N61 million. This performance is a reflection of Kasimu's managerial acumen in the face of tough economic conditions which have forced other development finance institutions both in Nigeria and the rest of Africa into distress and collapse. Against this background, NIDB still enjoys good relationship with its sources of foreign credit namely the World Bank, the European Investment Bank and the African Development Bank as it still services its obligation to them as they fall due.
The only problem is with European Investment Bank whose $75 million was blocked due to European sanction on Nigeria, NIDB thus can make a claim of making outstanding contributions to Nigerian's economic development through approving more than 100 loans for projects worth N6.4 billion spread across the country. The loans have generated capital formation of more than N20.4 billion and created more than 300,000 direct jobs in the process.
It is therefore not surprising that in the 1998 budget, government approved an allocation of N297.7 million to NIDB to help recapitalise its operations while other share-holders expected to provide the remaining N202.3 million to beef up the bank's paid up share capital to N1.5 billion. The aim is to reposition NIDB for the challenges of the new millennium. Kasimu has advocated restructuring of the small and medium-scale enterprises scheme SME to enable them contribute more meaningfully to this critical segment of the economy.
Newswatch June 29, 1998
" Newswatch 1998