The federal government has begun plans to shut down the National Economic Reconstruction Fund (NERFUND) over non-performance and non-performing loans of over N17.5 billion.
According to NAN, a committee had been formed to ensure the smooth liquidation of the company by the end of October.
The agency said a source in the ministry of finance disclosed this.
The committee is expected to come up with recommendations concerning the welfare of the NERFUND workers and also what to do with the office equipment.
The committee is also expected to recommend an agency that would handle the numerous pending court cases initiated by NERFUND to recover billions of naira in bad loans.
About 1,143 projects in the small and medium enterprises sector were reportedly financed with the NERFUND loans between 2010 and 2013.
The source said NERFUND currently has problems recovering the loans, adding that out of N17.5bn, the sum of N14.2bn representing 80 percent was borrowed by a few people.
He said the ratio of non-performing loans was high because many of the loans were not collateralised.
Meanwhile, a staff of NERFUND said all workers of the oraganisation have been officially informed about the development.