The Federal Ministry of Finance and the Bank of Industry (BoI), on Wednesday signed a memorandum of understanding (MoU) to recover an outstanding N17.5 billion loan being owed by customers of the Nigeria Economic Reconstruction Fund (NERFUND).
At the MoU signing ceremony in the Ministry of Finance was represented by its Permanent Secretary, Dr. Mahmoud Isa-Dutse while the BoI Managing Director, Mr. Olukayode Pitan stood in for his bank.
Pitan, who spoke shortly after the signing, said the bank would adopt all legal means available to recover the bad loans for the government.
“Part of what we signed today is that BoI will continue to manage NERFUND. That means that those who owe 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 said.
Pitan deplored the failure 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.
He said: “For us from Bank of Industry, we have to learn from NERFUND what not to do so that we do not also end up like NERFUND.