Date Published: 07/09/10

Re: Fraud at NERFUND, Our Response

Our attention has been drawn to a syndicated story, variously captioned as above,  making the rounds on the internet about so-called fraud  at NERFUND. We initially wanted to ignore putting up a rejoinder but had a rethink because of the likelihood of such stand lending credence to the veracity of this story.

Without any equivocations, we state that these stories are completely false and are malicious concoctions fabricated by a disgruntled individual who either wants to get at a perceived enemy at the FUND or is jealous of the current positive turn of events at the organization.

For the avoidance of doubts, not a single kobo is being misused at this agency of the Federal Government. If anything, the Fund is likely to be the only DFI that is currently running at a profit!

For the records, we wish to state as follows:

   Capital Grant

Federal Ministry of Finance  223.0 million

Central Bank of Nigeria   105.5 million

Total      328.5 million

Loans obtained

Africa development Bank ADB 100 million Units of Account

Which is approximately     US$ 131 million

Equivalent            N2, 860,000,000)

MOFI working Capital Loan   N   300,000,000

Total       N 3,160,000,000

Grand Total     N 3,488,500,000

 NERFUND RECORD OF PERFORMANCE

PROJECT APPROVALS AND DISBURSEMENTS

570 projects were approved between 1989 and 1999

266 were disbursed i.e. Loans granted to them.

The approved projects are spread across the 36 states of the federation and the FCT: 

A total of N5, 133,986,730.33 has been disbursed to these projects as term loans. This is comprised as follows:

Foreign Currency Term loan – US$131,860,399.92 (N2, 900,928,798.24)

Naira denominated TERM loans  - N781, 407,040.63

Working Capital Loans  - N1, 451,650,891.72

Total         - N5, 133,986,730.59

With regard to the N2b Supplementary allocation for 2009, the first round of projects were approved by the Interim Management Committee (IMC) of the Fund last Friday June 25, 2010; and as soon as this approval is ratified by the Minister of Finance, the details shall be made public. 

The petitioner, as reported by the internet publication also alleged that the MD/CEO of NERFUND, Mal Baba Gimba had over stayed his term. What must be understood is, the MD is an employee of government and shall remain so until deemed otherwise by his employers. 

Finally and in regard to the NERFUND property at wuse zone 4, we have responded severally to this, and do wish to reiterate here that the property is been prudently managed with advice from relevant government agencies, especially the Federal Ministry of works and with period direction provided by our supervising Ministry of Finance. 

Thank you, 

Dahiru Ali

Head, Corporate Affairs,

NERUND

+23492904680