About KSIP
Kano State Investment and Properties Limited (KSIP) is a Development Finance Company wholly owned by the Government of Kano State of Nigeria.
Initially incorporated under the Companies Decree of 1968 in 1971 as Kano State Investment Company Limited, KSIP was re-organized in 1976 in order to put the Company to better serve the purpose for which it was established, resulting in the expansion of the Company’s activities to include Property Development. The Company was thereafter in 1978 renamed Kano State Investment & Properties Limited (KSIP) to reflect the greater responsibilities assigned to it by the State Government.
KSIP is based in Kano, Nigeria’s second largest industrial and commercial center. Kano is a cosmopolitan city that is blessed with modern communication systems, abundant water supply and electricity, hotels of reasonable standard and an international airport.

Objectives of KSIP
The major objective of KSIP is to stimulate the promotion and growth of Commercial activities in Kano. It also plays the role of assisting local and foreign investors to promote and run their own business whether by way of direct equity investment or through joint equity partnership.
As an investment outfit and Industrial Promoter, KSIP plays a leading role in fulfilling the State’s industrial development objectives and equity investment plans of the government.
KSIP also assists indigenous entrepreneurs in understanding and adopting modern approach to investment in the promotion, establishment of industrial ventures, expansion and modernization or diversification of such ventures. KSIP also encourages and facilitates the acquisition of investments, shares and securities. It also assists foreign investors in understanding the local environment and its required sufficient assistance as may be necessary to enable them takeoff successfully.
KSIP co-ventures with other development finance institutions the banking community and foreign investors in the promotion of projects deemed viable, desirable and strategic to its overall objectives.

Organization and Management
The operational policies of the Company are formulated by the Board of Director (appointed by the State Government), while the implementation of such policies rests with a team of management staff, headed by a Managing Director (also a member of the Board). The Managing Director is supported by five Divisional Heads comprising Investment, Property and Industrial Development, Finance & Accounts, Administration and Personnel and Legal/Secretarial Services. These Divisions are headed by qualified and experienced staff.


Operations
KSIP is active and innovative in all aspects of project conception and implementation. Proposals that are considered viable, are documented, analyzed, evaluated, appraised and then presented to the KSIP Board of Directors for approval after which project implementation commences primarily by way of equity participation and / or sourcing of medium and long term facilities for the establishment of new commercial and industrial and property enterprises and the expansion and modernization of existing ones.
The risk and prospects involved and the particular requirements of a project determine the financial and investment mix, which KSIP would recommend.

Capital Structure and Investment Portfolio
The capital structure of KSIP as at 31st March 2004 stood as follows:-

Authorized share capital N250,000,000.00
Paid Up Share Capital N216,000,000.00

With extensive holdings in both quoted and unquoted Companies in various sectors of the economy, the value of KSIP’s portfolio as at 30th April, 2005 stood at:-
Quoted Investment (Market value) N667,251,629
Unquoted Investments N610,403,485
Total Investments N1,277,655,144

Finance Services
Sourcing of loans and advances for suitable projects.
Equity participation in projects
Corporate finance guidance and counseling

Consultancy Services
In recognition of the need to make greater impact on the society in which it operates, KSIP, in 1989, established a Consultancy Services Unit, for the provision of investment and managerial counseling to the Company for the attainment of the Company’s policy objective on one hand, and to the enterprising public to help them in their establishments and to serve as a source of revenue generation for the Company.

Management Consultancy Services
Secretarial/Nominee services
Data collection
Project feasibility studies
Management advisory services
Liaison with the State Government or other State and Federal related bodies on behalf of clients.
Identification on suitable Nigerian / Foreign partners.

The above services are provided to:-
Promoters of new projects
Owners of existing projects / Companies
Foreign investors


Commercial Activities
KSIP is also active in the commercial sector. It markets agricultural products, building materials and other durable products.
The Company undertakes its commercial activities in the following areas:-
Purchase and sale of agricultural products with particular emphasis on cash crops such as cotton, groundnut, Soya beans, beniseed, chilli pepper and gum Arabic etc.
Purchase and sales of building materials such as cement.
The company also Exports the above products.

The Company receives and executives contracts and supplies orders from corporate organizations and worthy individuals.
The Company also finances the activities of entrepreneurs that have good business proposal with profit potential in the form of L.P.O. financing. KSIP also provides loan on profit sharing arrangement for viable profitable businesses.

Poverty Development
The Company is also active in the building / construction sector. It supplements Government’s efforts of providing decent and affordable housing accommodation to its citizens.
The Company’s property development activity covers areas such as:-
Property development such as residential houses, shops and warehouses for rent/lease.
Property development for outright sale to interested buyers.
Management contract for property maintenance and management.
Site and services development
Real Estate Development

KSIP offers reasonable and affordable prices for all its properties on sale or rental.

KSIP Investment Policies
KSIP gives priority to projects that:-
Maximize the use of local materials.
Promote import substitution and export potentials.
Promote provision of employment with requisite training opportunities.
Transfer of modem technology.



KSIP considers investment in projects that are:-
Commercially viable i.e. projects which show an ample promise to generate sufficient revenue to ensure reasonable profitability and at the same guarantee future expansion.
Economically desirable by sharing prospectus for increasing the national income, conserving foreign exchange and providing reasonable employment opportunities.
 Technically feasible, with clear abundance of local raw materials, utilities, labour and management at reasonable costs. The technology employed must be free of any serious danger of early obsolescence. Spare parts for maintenance must be readily available for the expected life span of the plant.

Projects should complement the National Development plan and, in particular, the Kano State development plan and must not conflict with government policy guidelines and regulations.

Terms and Conditions for KSIP’s Participation
Project promoters will be required to hold substantive portion of the equity capital of the project. Where foreign technical partners are involved, they may be required to hold significant portion of the equity.
It should be noted that the level of equity participation of KSIP depends on the nature of the project and its specific requirements. Generally, KSIP participation is not restricted.

Loans:
 Loans are normally secured by a first charge on the fixed and / or floating assets of the borrowing party.
Loans tenure shall not exceed five years after final draw down, except under special circumstances and / or arrangement.
Necessary loan agreements have to be concluded before the commencement of disbursement.
Loans must also be used for the purpose for which such loans are meant.

Mode of application for KSIP’s assistance or Participation could be through formal approach to KSIP either in person or in writing. Project promoters / sponsors are expected to provide:-
Detailed feasibility report on the proposed project including but not limited to the following:
o Market study indicating Demand and Supply gap, and competitiveness of the proposed products.
o Raw materials and project location study,
o Production process or nature of proposed activity.
o Capital requirement estimates, cash flow, Profit and Loss and Balance Sheet projections for at least five years and assumptions underlying such projections.
o Proposed financing plan, project cost and expected capital structure and sources of funds.
o A brief background of the promoters, management, Board of Directors and shareholders.
Details of agreement and / or other prior commitments which may affect the execution of the project should be submitted.
Any other relevant information that would facilitate the quick processing of the proposal.
In the case of on-going projects, Audited Annual Account for the past five years (or available period), historical background and nature of activities, particulars of Directors / Management / Properties, Certificate of incorporation, Memorandum and Articles of Association and Banker(s) reference, Evidence of tax payment for the latest three years are also to be provided.

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