Section 6: Functions of the Fund

(1) The Fund shall provide medium to long-term finance to participating banks for on-lending to eligible enterprises or projects.
(2) The Fund shall be responsible for the disbursement to, and recovery from, participating banks of all loans made to them for on-lending to enterprises and projects approved pursuant to this Act.
(3)
Unless a participating bank has pre-paid all the amounts due on the loan before the scheduled repayment date, the Fund shall inform the Central Bank of Nigeria of any amount outstanding at that date and it shall be the duty of the Central Bank of Nigeria to debit the account of the participating bank concerned at the Central Bank of Nigeria with the amount outstanding on the particular loan and credit that amount to the account of the Fund.
(4) In order to meet foreign obligations promptly, the Fund General Manager shall procure the foreign currency required to service the Fund's foreign currency loans and hold such component of foreign exchange acquired in income-bearing securities or deposits, and repay its loans as per scheduled repayment dates from the component so held.
(5) The Fund shall be self-financing, service its loans and meet administrative expenses from its own resources, and shall not receive any government subvention except as provided under section 8 of this Act.