BoI gets FG’s nod to Recover NERFUND’s N17.5bn Bad Loan

The Federal Government has given approval to the Bank of Industry to recover the N17.5bn outstanding loans being owed by customers of the Nigeria Economic Reconstruction Fund.

NERFUND is currently having liquidity challenges owing to its huge non-performing loans portfolio.

The instrument of approval was given through a Memorandum of Understanding signed on Wednesday in Abuja between the Ministry of Finance led by its Permanent Secretary, Mahmoud Dutse and the BoI led by Mr Olukayode Pitan, the Managing Director.

Also present at the signing of the MoU, which was held at the headquarters of the ministry of finance are top officials of the bank and the ministry.

Speaking during an interview shortly after the event, Pitan said that the bank would adopt all legal means available to recover the bad loans for the government.

He said, “Part of what we signed today is that BoI will continue to manage NERFUND. That means that those who are owing NERFUND and also outstanding facilities that have put NERFUND into trouble, BoI will recover and make sure those loans are collected.

“This is to let people know, especially those owing NERFUND to begin to come to the Bank of Industry for repayment. People took the money and refused to pay back, some had good reason but many did not.

“The money to be recovered now is about N17.5bn and we will use all available means open to us legally to recover the money.”

He decried the inability of people who borrowed money from government agencies to repay, adding that such practice was denying others who needed funds for their business the opportunity to raise the needed financing.