N17 billion bad loan: Reps kick against FG’s move to shutdown NERFUND

THE House of Representatives Ad-Hoc Committee on Federally-owned Development Finance Institutions (FDIs) on Tuesday called for reorganisation of the Nigerian Economic Reconstruction Fund (NERFUND), over unpaid loan of about N17 billion by debtor.

The committee’s chairman, Honourable Emeka Anohu who briefed newsmen said that, “As part of our efforts to ensure that the DFIs are encouraged to deliver on their mandates, we would be inviting all the past managing directors/CEOs regardless of whether or not they acted in that capacity to come for a public servant.

“In the same manner, we would invite to a public hearing the customers that accounted for the bad debts that have grounded the activities of the DFIs to tell Nigerians why they have refused to pay their loans,” he stated.

According to him, “The government has given an executive order for its operations to be wound down and merge with Bank of Industry.”

He however said that, “In spite of these challenges, shutting down NERFUND is not the solution. The agency should be reorganised and positioned to discharge its mandates to the economy.

According to him, “Nigeria is in need of interventionist agencies like NERFUND. Therefore, shutting the existing ones rather than restructuring them is certainly not the best way out. What happens to its existing staff and those it supposes to employ.”