The gymnasium was opened in 1878 as a women's progymnasium (the 4th grade educational institution, elementary school) at the expense of the St. Petersburg goldminer, the native of Nizhyn A.F Kushakevich in memory of his deceased wife Pelagei.
In 1884 it was transformed into a gymnasium. For this purpose, besides the funds according to the will, A. F. Kushakevich donated his own house on Gogol's street.
In 1920 the gymnasium was transformed into a Single Labor №7 for boys, in 1943 a military hospital was placed there. From September 1, 1954, it become the primary institution of a mixed type of education (for girls and boys).
The city credit bank was built in a modern style at the late nineteenth century. The opening of a bank with its credit system gave the city profit and accelerated the development of industry and trade. Its first director was elected Nizhyn merchant Mikola Kulikov.