In this guide, I will explain how you can get NERFUND loans in Nigeria. Getting a business loan has been quite difficult for Small and Medium scale Enterprises (SMEs) in recent times, whether it’s a start up fund, overhead expenses or for a business expansion. With the “prevailing high” interest rates and small tenor period, it has become increasingly difficult getting a business loan from commercial, community and industrial banks.
Economic success has always been essential in a country’s development, hence the need for Government to encourage the private sector by setting up finances tools to aid economic growth.
In 1989, The National Economic Reconstruction Fund (NERFUND) was established under the Decree No 2, to aid in acquiring medium to long-term financing to feasible Small and Medium scale production enterprises. Recent research has shown that the program has funded about 2,829 projects valued at N9.5 billion
National Economic Reconstruction Fund (NERFUND) is a Federal Government Business Financing Agency; a type of financial institution established to assist both micro and macro entrepreneurs that are engaged in manufacturing, mining, food processing, agro-allied and ancillary services such as fruit juices, noodles, tomato, LPG bottling, printing and publishing, etc.
The main objectives of NERFUND are:
All Nigerian entrepreneurs are eligible to apply for NERFUND loans either as individuals, under the Micro Credit Scheme, or as Associations, Cooperatives or Corporate Entities/partner institutions under the SME Credit Facility.
SCF are available for Small, medium and large enterprises, whom meet the following requirements:
Are you trying to get NERFUND loans? If yes, here are the procedures for NERFUND application;
Related: How to Get a Loan in Nigeria
The Micro Credit Scheme was recently started to carter for low-budget business owners who are the vast majority and are focused mostly on micro scale. This introduction became necessary because commercial and industry banks are not too keen to provide credit to this sector of the business community. The main objective of this scheme is poverty alleviation and increases the GDP growth rate.
The target audiences are graduates, women societies, market associations, artisans and lots more who are engaged in cottage industries, and small scale manufacturing/food processing, etc.
This fund is valued below Five Million Naira (N5, 000,000.00). Other attributes of this product include, but not limited to the following:
The SME credit Facility is the traditional forte of NERFUND, under this program, it has funded the establishment of 266 Small and Medium scale Enterprises between 1990 and 1999.
NERFUND’s significance is based on careful project selection and management; hence, it specifically supports quality projects with emphasis on developmental impact. NERFUND therefore, considers industries that meet the following criteria:
Are you interested in contacting NERFUND, below is their official address
National Economic Reconstruction Fund
No 3 Zinguichor Street,
Off IBB way,
Wuse Zone 4,
+234 9 2904838, +234 9 2904680, +234 9 2904823
Weekday: 8:00am to 5:00pm
Share this post on social media if you like it. Success!