INTRODUCTION.
If there’s any peculiar hurdle most micro, small and medium enterprises (MSMEs) business owners struggle to cross, it is that of insufficient funds. For some business owners, it is fund to jump-start a business while for others; it is fund to take their business to the next level. The issue of money has led many to abandon their entrepreneurial aspirations. Those who have dared have experienced snail speed growth because of lack of or little knowledge of how to access funds that could aid their bail out.
Most business owners are very much aware of some fund sources like personal savings, friends, money lenders, contributions, co-operatives etc. also there are those who are aware of bank loans but wouldn’t dare because of absurd interest charge. Unfortunately, little is known of fund sources from the federal government.
However, in a bid to offer a lifeline, the federal government has set apart a funding platform where small business owners like you, can access collateral-free-loan. The government agency responsible for this is the national economic reconstruction fund (NERFUND).

THE ESTABLISHMENT OF NERFUND.
NERFUND as it is generally referred to was established by decree No. 2 of 1989 which was the NERFUND act, cap 254, 1990 laws of the federation. NERFUND is an intervention scheme established to ensure the speedy rise of micro enterprises in the country through the provision of medium and long term loans.
The real intention of government is to harness the large army of Nigerian businessmen and women who merchandise imported consumer goods and
re-orientate them to embark on local manufacture of these goods. The agency is presently headed by Alhaji Maina Gimba.

HOW GENUINE IS THE NERFUND FREE LOAN SCHEME?
NERFUND assisted projects for individuals and business groups evident in all 36 states of the federation.
Earlier in February of 2011, the Honorable Minister of Finance, DR. Olusegun Aganga gave approval to the second set of industrial projects for funding under the NERFUND scheme.
The Minister gave his nod to the setting up of a total of 415 micro enterprises worth a total investment cost of N998.2 million. The current number brings the total number of operations in 2009 to 623 projects valued at a total investment cost of N1.255 billion. The business groups / individuals who are beneficiaries are listed in the NERFUND websites.

WHAT IS NERFUND MANDATE?
NERFUND’s mandate is actually, to make long and short term micro-credit loans available to individuals (skilled men and women, retirees, young graduate etc). and business groups involved mainly in manufacturing, mining, quarrying, agro-allied, industrial support services, equipment leasing and others. Such small and medium enterprises (SMEs) must be wholly Nigerian owned. The grand objectives are to increase the quantum of goods and services available for local consumption and export, provide needed employment, expand local production base and value to the economy.

ELIGIBILITY TO ACCESSING THE FUND.
Every Nigerian business qualifies for NERFUND funding if it is engaged in manufacturing, agro-allied projects, industrial support services and other services provided that:
The enterprise or project is wholly by Nigerian.
The enterprise or project must fall into micro, small or medium scale.
In the case of a manufacturing enterprise or project, at least 60% of its raw materials and other production inputs must be locally sourced.
Intended project or business is not into merchandising or primary agriculture.
Your business or project must be value and must also have potential to give employment.
Provided the fund will be for business expansion, diversification, purchase of fixed assets like machinery etc.