The Central Bank of Nigeria (CBN) on Monday announced the commencement of selecting high-impact companies and projects under its 100 for 100 Policy on Production and Productivity (PPP).
An advertorial statement by the banking sector regulator stated that the selection criteria for participation under the CBN’s 100 for 100 PPP shall be premised on immediate contribution to economic growth, jobs creation, and social impact.
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In selecting the companies and projects, the CBN outlined certain evidence-based, transparent and measurable criteria to be deployed.
One of such criteria is that 50 percent of raw material input should be sourced locally (15 >80 percent of jobs created should be for Nigerians (10)
The CBN Intervention under the 100 for 100 PPP Instrument shall provide Naira intervention funding under existing CBN Intervention Processes; complete FX funding for new machinery;
This instrument is for only new projects; will not cover any refinance of existing facilities and will be subject to an independent evaluation by international Audit firms.
All interventions under this project will be made public and published in national dailies.
The CBN said it will work with fiscal authorities to facilitate power sector, port and export reforms as well as ease of doing business to improve competitiveness in Nigeria so as to complement and propel this initiative.
“Candidate companies with satisfactory performance are invited to apply through their banks effective, today November 01, 2021, to the CBN Department of Development Finance, Office Of The Governor, Central Bank of Nigeria, Central Business District, Abuja with complete documentation,” the statement said.
The broad objective of this new CBN’s 100 for 100 PPP financial instrument is to reverse the nation’s over-reliance on imports, by creating a platform that targets and supports the right companies and projects with the potential to immediately transform and jumpstart the productive base of the economy.
Under the initiative, projects must catalyse sustainable employment-led economic growth through increased domestic production and productivity in the near term. The projects for consideration shall be new projects in existing companies requiring new machinery and other support and must have the greatest potential to achieve significant scale in their in-country production and for domestic consumption and exports.
