Business and Economy

CBN Governor Flags Off Project 100 For 100 Policy on Production and Productivity (PPP)

Governor of Central Bank, Godwin Emefiele flags off the project 100 for 100 an initiative from the CBN geared towards increasing productivity and wealth creation for the economy.

Mr. Emefiele says a total of 28 companies whose proposals have been duly screened were awarded this funding opportunity to the tune of 23.2 billion naira.

These companies comprise of 14 manufacturing projects, 12 agricultural projects, and 2 health projects, which when fully operational will generate over twenty thousand jobs directly and indirectly across our economy and earn us over 125 million dollars in foreign exchange.

Recall that the CBN  launched the 100 for 100 Policy on Production and Productivity (PPP) targeted at private companies who have a project to fund and can apply for as much as N5 billion under the scheme.

Once the apex bank can determine that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”, the company would be selected. The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.

The CBN is prepared to select 100 private sector companies with projects that have the potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.

The initiative, which would be bank-led, will be rolled over every 100 days (that is, quarterly) with a new set of companies selected for financing under the initiative.

The  initiative shall be funded from the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.

Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. The interest rate under the intervention shall not be more than 5.0% p.a. (all-inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% p.a. (all-inclusive) effective from 1st March 2022.

Last week the Central Bank of Nigeria Governor, Mr Godwin Emefiele had said that, “the applications are currently being processed and the first batch of beneficiaries under the intervention will be announced on 31st January 2022, with their names published in national dailies.

“These projects have been carefully selected in line with the approved selection criteria as contained in the guidelines.”

“Already, the Apex Bank has received 224 applications, valued at ₦294.91 billion for real sector projects in agriculture, energy, healthcare, manufacturing and services.”

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