The Next Edition
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate
No Result
View All Result
The Next Edition
No Result
View All Result
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate
Home Headline News

N17.5bn bad loans: FG to shutdown NERFUND

Agency Report by Agency Report
October 5, 2017
in Headline News
N17.5bn bad loans: FG to shutdown NERFUND
0
SHARES
5
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

The federal government has begun plans to shut down the National Economic Reconstruction Fund (NERFUND) over non-performance and non-performing loans of over N17.5 billion.

A source at the Federal Ministry of Finance, said on Thursday that in Abuja that a committee had already been formed to ensure smooth liquidation of the company by the end of October.

You might also like

Guild of Editors Suspends Editor For One Year

Enugu Govt. Urges Digital Health Records Adoption  

Police Arrest Three Suspects For Kidnapping Bayelsa High Court Judge, Justice Umokoro

The source said that the committee was expected to come up with recommendations concerning the welfare of the NERFUND workers and also what to do with the office equipment.

The committee was also expected to recommend an agency that would handle the numerous pending court cases initiated by NERFUND to recover billion of naira in bad loans.

According to the source, about 1, 143 projects in the Small and Medium Enterprises sector were financed with the NERFUND loans between 2010 and 2013.

The source said that NERFUND currently had problems recovering the loans, adding that out of N17.5bn, the sum of N14.2bn representing 80 per cent was borrowed by a few people.

He said the ratio of non-performing loans was high because many of the loans were not collateralised.

Meanwhile a staff of the NERFUND who preferred anonymity told NAN that all workers of the organisation have been officially informed about the wind up.

“We have been given the choice to either resign or be sacked. The managing director told us the management is working with the permanent secretary of the Federal Ministry of Finance.

“They have promised that at the end of the day, we will not be jobless. They will place us somewhere else, so we are expectant,” the person said.

NERFUND was established by Decree No. 2 of 1989 to act as a catalyst towards the stimulation of the rapid rise of real production enterprises in the country with a seed capital of N300 million.

In 2002, the federal government merged Nigeria Industrial Development Bank (NIDB) and Nigeria Bank of Commerce and Industry (NBCI) to form Bank of Industry (BOI).

The federal government excluded NERFUND from the fusion of all development finance institutions (DFIs).

However, the agency’s capital had grown into billions of naira, but due to poor management the organisation had been in comatose since late 2013 losing its capacity to carry out its mandate.

In June 2016 the staff of NERFUND took to the streets to protest the mismanagement of the agency funds.

The federal government through the Minister of Finance, Kemi Adeosun, intervened by first shutting down the agency following failure to reconcile the differences between the executive management and the entire staff  so as to forestall a further breakdown of law and order.

Two weeks after the shutdown Adeosun officially instructed staff to return to work and appointed Dr. Ezekiel Oseni in August of the same year to act as Managing Director.

Just one year into his appointment the federal government has finally approved the winding up of the agency.

Tags: bad loansFGheadlineN17.5bnNERFUNDnewsNEXT EDITIONshutdown
Agency Report

Agency Report

Recommended For You

NGE Demands End To Harassment Of Journalists By Ebonyi Govt

Guild of Editors Suspends Editor For One Year

  The Nigerian Guild of Editors (NGE) has suspended one of its members, Mr. Steve Osuji, for violating the "off the record" provision in the Code of Ethics...

How My Husband, Pastor Killed My 7-Year-Old Son For Money Ritual In Enugu- Wife

Enugu Govt. Urges Digital Health Records Adoption  

    The Enugu State Government has called on public and private hospitals to adopt the digitalisation of patients’ medical records to enhance service delivery and reduce treatment...

Police Arrest 'immigration officer,' 3Others With Trailers Of Rustled Cows

Police Arrest Three Suspects For Kidnapping Bayelsa High Court Judge, Justice Umokoro

The kidnappers had last saturday demanded sum equivalent of N300million in foreign currency for his release.   The Nigerian police have arrested three suspected kidnappers of the Bayelsa...

CAC Registers 2million Businesses As FG Moves To Tackle Unemployment

CAC Unveils AI-powered Registration Portal

  The Corporate Affairs Commission (CAC) has announced a complete overhaul of the Company Registration Portal (CRP) and introduced a new Artificial Intelligence (AI)-powered registration portal, which is...

Next Post
N22.8bn fraud: Court resumes Adesola Amosu 's trial Nov. 7

N22.8bn fraud: Court resumes Amosu’s trial Nov. 7




Related News

Spurs’ Pochettino hot favourite to replace Mourinho

Spurs’ Pochettino hot favourite to replace Mourinho

Trump flunks history test on North Korea

NDLEA Nabs Drug Trafficker, Recovers Three Cocaine Parcels

Recruitment: NDLEA Releases List Of Successful Candidates




The Next Edition

Office Address

3B, Agboola Aina street, Off Toyin Street,
Ikeja, Lagos.

Quick Contact Details

Phone:
08033018430
Whatsapp:
08051679910

Email:
[email protected]
[email protected]

Categories

  • Aviation
  • Beauty
  • Breaking News
  • Business
  • Columnists
  • Editorial
  • Entertainment
  • Fashion
  • Featured
  • Football
  • Foreign
  • Headline News
  • Home & Garden
  • Interviews
  • Investigations
  • North Central
  • North East
  • North West
  • Opinion
  • Parenting
  • Politics
  • Relationships
  • South East
  • South West
  • South-South
  • Special Reports
  • Sports
  • Top News
  • Vox Pops

© Next Edition Business Development Limited

  • About Us
  • Advert Rate
  • Contact Us
  • Privacy Policy
  • Terms of Use
No Result
View All Result
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate

© Next Edition Business Development Limited