Closure of NERFUND May Truncate Recovery of over N7bn

It would seem like top management of the Federal Ministry of Finance shot themselves in the foot as the unprecedented act of shutting down the National Economic Reconstruction Fund (NERFUND) indefinitely last Thursday may have truncated the recovery of over N7billion owed the agency by Micro Small and Medium scale Entrepreneurs (MSMEs).

An industry source, who spoke to THISDAY in Abuja also hinted that the directive of the Minister of Finance, communicated via circular Nr. F.12891/S.3/T1/254 by the Permanent Secretary, Dr. Mahmoud Isa Dutse, may likely incense the National Assembly who may view the action of the ministry as a usurpation of the powers of the legislature.

It could be recalled that similar decision of former President Olusegun Obasanjo to order the close down of NERFUND without repealing the Act setting up the agency by the National Assembly was mentioned amongst other reasons given for the commencement of impeachment proceedings against the former President by the Hon Ghali Na’aba led House of Representatives.

In the latest development, the Permanent Secretary stated that the ministry was ordering the immediate close down of the agency indefinitely while staff members are to proceed on indefinite leave, following a peaceful protest by the members of staff of NERFUND over welfare issues and the lingering merger impasse.