Ndubuisi Francis in Abuja

The federal government has shut down the operations of the National Economic Reconstruction Fund (NERFND) indefinitely.

The action, which is preemptive, was taken to forestall a breakdown of law and order in the agency following growing staff differences.

A circular obtained by THISDAY announcing the shutdown, which was addressed to all the staff of the agency by the Permanent Secretary, Interim Management Council, said the Federal Ministry of Finance decided to take the action after its intervention to achieve reconciliation by contending interests failed.

“Following recent developments in your organisation and failure to reconcile the differences between the executive management and the entire staff, in spite of the ministry’s intervention, the FMF has decided to close down your agency with immediate effect

to forestall the breakdown of law and order.

“All staff should proceed on indefinite leave pending further instructions from the ministry,” the circular said.

NERFUND is a federal government agency set up to provide needed medium and long-term financing to viable small and medium scale production enterprises in Nigeria.