Brief on NERFUND:
The National Economic Reconstruction Fund (NERFUND) was established in 1989, by the NERFUND Act, cap.254, 1990 Laws of the Federal Republic of Nigeria.
Our Vision is to build a world class Development Finance Institution (DFI) anchored on professionalism, integrity, transparency and quality service delivery.
Our Mission is to support the growth of indigenous Micro, Small and Medium scale industrial Enterprises through the provision of medium to long term financing.
Our Core Mandate: The main objective of the fund was to fill the gap existing in the provision of medium to long term financing to small and medium scale industrial enterprises (SMEs).
Other objectives for establishing NERFUND are listed as follows:
• correct any observed inadequacies in the provision of medium to long-term financing to small and medium – scale industrial enterprises, especially manufacturing and agro-allied enterprises and ancillary services;
• provide medium to long-term loans to participating commercial and merchant banks for on-lending to small and medium-scale enterprises for the promotion and acceleration of productive activities in such enterprises;
• facilitate the provision of loans with five to ten year maturity, including a grace period of one to three years, depending on the nature of the enterprise or project;
• provide such loans either in naira or in foreign currencies or both according to the sources of funds available to the Fund and the requirements of the eligible enterprise or project.
NERFUND – National Economic Reconstruction Fund
The National Economic Reconstruction Fund (NERFUND) was set up to provide needed medium – to long-term financing to viable Small and Medium scale production enterprises. The grand objectives are to increase the quantum of goods and services available for local consumption and export, provide needed employment, expand our production base and add value to the economy.
In the words of our President, Commander-in-Chief “the NERFUND is not another cake-sharing exercise. It is designed to aid in the cake-baking process, and as such, fund disbursements by the NERFUND will be based on competitive efficiency”. Since there is more demand for the NERFUND loans than the resources currently available can satisfy, only the most viable projects may benefit from the programme. Your challenge is to put together one of the most viable projects to benefit from the NERFUND programme.
The NERFUND has been very successful in reorientating the nation towards a production culture from the old trading culture. So far, the NERFUND has approved loans for one thousand four hundred and ninety seven projects, valued at over five billion naira (N5b)