Hope for SMEs as NERFUND makes headway in N17.2bn loan recovery

Hope is once again returning to small and medium scale industrialists as the new boss of the National Economic Reconstruction Fund (NERFUND) makes headway in the recovery of N17.2 billion bad loan owed by businesspeople.

NERFUND was established to provide needed medium – to long-term financing to viable SMEs in the manufacturing sector. It is tailored towards increasing the quantum of goods and services available for local consumption, boosting export, providing needed employment while expanding the country’s production base. But many customers who got loans from the institution have failed to return same for years, thereby frustrating the objectives of the Fund and preventing more support for other small businesses.

“There is a management agreement between the ministry of finance and the Bank of Industry. My assignment in NERFUND is a brief one. We have a lot of loans that were given out but are not performing—about N17.2 billion. But the good thing is that since I resumed four to five weeks ago, some of the customers have been coming to pay,” said Ezekiel Oseni, acting managing director ofNERFUND, who spoke to journalists after the 34th General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held last Thursday in Lagos.

Oseni said recalcitrant customers have been referred to the Economic and Financial Crimes Commission (EFCC).

“Some of the customers have been coming around looking for loan walk-out and some concessions on interest. I insist they pay the entire principal sum, and then we can negotiate the outstanding interests,” he added.

Speaking on how to increase the relevance of the internal audit team today, Oseni said the auditors need to think out of the box and diversify into being consultants, adding that they must step up their games to check cyber crimes.

He advised internal auditors to strive for independence, stressing that the best risk officers are those with background in internal auditing.

Femi Taiwo, director at  PricewaterhouseCoopers (PwC), said cyber criminals are not resting on their oars, pointing out that Nigeria is already losing a lot to the crime.

Taiwo said the tactics of cyber criminals include spear phishing (use of emails that appear to be from an individual or business that you know, but aren’t), software hijacking, mail ware and AV targeting, among others.

He advised organisations to show ability to adapt and respond to dynamics, while sharing information on the way forward.

ODINAKA ANUDU