Functions of National Economic Reconstruction Fund (NERFUND) are listed in this article and we hope you find it informative.
Out of the arising need to provide the needed means of financing small and medium-scale businesses on a long-term basis that the National Economic Reconstruction Fund (NERFUND) was established in 1989 as a product of the NERFUND Act, cap.254, 1990 Laws of the Federal Republic of Nigeria.
The National Economic Reconstruction Fund (NERFUND) was established to boost the production scale of SMEs.
The major objective of the NERFUND is the boost the number of services and goods that are produced and made available for consumption locally as well as for exportation and equally, provide gainful employment for the masses and expand the production base which will, in turn, add value to the community and the Nation at large.
The NERFUND is not another organization that is raised to embezzle public funds or distort monies from the government rather, it is designed to help in making ordinary Nigerians become extraordinary persons in the field of entrepreneurship.
To make this dream a reality, the requirements for giving funds in NERFUND are strictly based on the efficiency of the benefactor and as you well know that when sugar is poured on the floor, innumerable ants gather, and the resources available in NERFUND are quite limited compared to the number of persons applying for the loans, this makes the screening process a bit tough and at the end of the day, only persons who have a good and viable prospect benefit from the program.
Functions of National Economic Reconstruction Fund (NERFUND)
The challenge for those who seek to benefit from the program is to come up with a viable project that will entice the panelists and they will dance home as beneficiaries; no politicking.
So far, the NERFUND has recorded a great percentage of success in re-orienting the economy of the nation towards a culture of production from the outdated culture. Since its inception, the NERFUND has approved and disbursed loans up to one thousand four hundred and ninety-seven (1497) projects with a total estimation of five billion Naira (5,000,000,000,000).
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The vision of the Organization hence is to establish a world-class Development Finance Institution (DFI) which will be built around transparency, quality service delivery, professionalism, and integrity.
To achieve their vision, they support and encourage the growth of domestic Micro, Small, and Medium Scale industrial enterprises by providing a means through which they can get long-term financing.
Aside from just the disbursement of loans, other functions of the NERFUND includes:
1. They take up a measure to effect correction upon any inadequacies in providing financing on a long-term basis to small and medium-scale enterprises especially when it has to do with manufacturing and agro-allied ancillary services and enterprises.
2. Make provision for loans on a small to long-term basis to commercial and merchant banks that participate in the program for lending to small and medium-scale businesses to promote and speed up production activities in such companies.
3. Ensure and speed up the process of loan disbursement with a lifespan of five to ten years and occasionally, with a grace period of one to three years still dependent upon the nature of the business for which the loan was gotten.
4. Give out loans either in local or foreign currencies or in some cases, in both depending on the sources from which the fund came and the requirement of the company that is eligible for the loan.