National Economic Reconstruction Fund (NERFUND) was a Nigerian financial institution established to support indigenous micro, small and medium scale industrial enterprises through the provision of medium to long term financing.[1]
It was established in 1989, by the NERFUND Act, cap.254.[2] Years later, the merger of the mandates of Nigerian Industrial Development Bank, Nigerian Bank for Commerce and Industry and the National Economic Reconstruction Fund led to the establishment of Bank of Industry in 2001.[3]
Closure
editAs of 2013, it was reported that NERFUND ran at huge losses up to N5.7 billion.[4] As of 2017, NERFUND had N17.5bn in bad loans.[5] After a special assessment report by the Nigeria Deposit Insurance Corporation and the Central Bank of Nigeria, Mahmoud Isa-Dutse, the Permanent Secretary, Federal Ministry of Finance announced the closure of NERFUND stating it was too expensive to run, it has a bad balance sheet, salary expenses and overheads.[6]
References
edit- ^ "Nerfund | About Nerfund". 6 February 2019. Archived from the original on 6 February 2019. Retrieved 16 February 2023.
- ^ "National Economic Reconstruction Fund Act". www.ecolex.org. Retrieved 16 February 2023.
- ^ "Bank of Industry Limited – United Nations Environment – Finance Initiative". Retrieved 16 February 2023.
- ^ "Nigeria appoints new managing director for reconstruction fund, NERFUND". www.premiumtimesng.com. Retrieved 16 February 2023.
- ^ "N17.5bn bad loans: FG to shutdown NERFUND". 5 October 2017.
- ^ Silas, Don (6 November 2017). "Nigerian govt explains closure of NERFUND". Daily Post Nigeria. Retrieved 16 February 2023.