The Central Bank of Nigeria (CBN) has disbursed a total of N23.20 billion to 28 companies whose projects were selected for funding in the first batch of its newly introduced “100 for 100 Policy for Production and Productivity (PPP)” initiative.
The initiative, 100 for 100 PPP, is a financial instrument designed to create the flow of finance and investments to enterprises with potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
KEY TAKEAWAYS:
- The apex bank released the list in a document posted on its official website on Wednesday.
- The beneficiaries, according to the apex bank, are private companies that have projects to fund.
- Out of the 28 beneficiaries, 14 companies are in the manufacturing sector, 12 are in the agricultural sector, and two are in the healthcare sector.
- Under this initiative, every 100 days, manufacturers in critical sectors that seek to engage in greenfield projects or in expanding their existing facilities will have access to cheaper forms of credit at single digit rates, as well as foreign exchange to procure plants and machineries.
- A new foreign exchange (FX) bidding regime will soon be launched, says CBN Governor, Mr. Godwin Emefiele
Emefiele spoke at the formal launch of the 100 for 100 PPP scheme. He explained that the primary objective of the CBN in introducing the initiative was to ensure that priority was accorded to companies that displayed verifiable progress in the bank’s import substitution and job creation drive.
According to the apex bank boss, the funds (which he stressed were loans) disbursed to beneficiaries of the 100 for 100 policy, followed due screening of the applications received. He said the projects, valued at N23.20 billion, comprised 14 in the manufacturing sector, 12 in the agricultural sector, and two in the healthcare sector.
“Following due process on the application received, I am pleased to inform you that, unfortunately, only 28 companies with projects that have articulated proposals have been selected for funding,” he had said.
He assured all current and prospective operators in the industrial sector that the CBN was ready to continue to provide the needed support, financial and otherwise, to fast-track the development of the sector.
He said for this first cycle of the 100 for 100 policy, which ended yesterday, 243 applications valued at N321.06 billion, spread over key sectors, including agriculture, energy, healthcare, manufacturing, and services sectors, were submitted on the portal.
Emefiele said after much engagement, 79 applications valued at N121.87 billion, were received from banks for projects in six sectors, namely agriculture, energy, healthcare, manufacturing, mining, and services sectors. He said the requests were carefully screened and scrutinised against a set-out selection criteria, and were categorised into production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.
But only 28 companies with projects that clearly articulated their proposals were selected for funding, he said, adding that the CBN intended to revisit the applications that were declined with a view to understanding areas of their shortcomings and enabling more companies to benefit from the initiative meant to stimulate manufacturing output in the country.
“With the significant opportunities in the real sector, there remained sufficient room for additional investments in the various sub-sectors and I would like to urge potential investors to take advantage of the various CBN intervention programmes and schemes, as well as other financing options out there, to invest in key sectors of our economy given the potential gains that could be generated from them.” He said.
Stakeholders, including Deposit Money Banks (DMBs), Manufacturers Association of Nigeria (MAN) and the beneficiary companies, all commended the apex bank and expressed confidence in the ability of its initiatives to boost domestic production as well as diversify the economy.
He said, “Under this initiative, every 100 days, manufacturers in critical sectors that seek to engage in greenfield projects or in expanding their existing facilities will have access to cheaper forms of credit at single digit rates, as well as foreign exchange to procure plants and machineries.”
See the 28 companies that benefited from CBN 100 for 100 PPP first circle.
