CBN to unveil new FX bidding regime to drive local production

Governor of the Central Bank of Nigeria, Godwin Emefiele has disclosed plans to introduce a new forex bidding regime designed to support companies engaged in local production and job creation.

Emefiele who made this disclosure during the formal launch of the 100 for 100 Policy for Production and Productivity (PPP) in Abuja, said that the new FX bidding regime which is expected to be market-driven will be solely for the importation of spares, plants and equipment needed to increase production capacities of local producers.

“We would soon unveil a new FX bidding regime that is market-driven and supports companies that accord utmost priority for our local production and job creation drive,” he said.

“CBN will continue to provide all the needed support, both in Naira and dollars specifically for the importation of plants and equipment to actualize these investments.”

Emefiele further explained that of 243 applications valued at N321.06 billion, received under PPP initiative, 28 companies with projects that have clearly articulated proposals were selected for funding.

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These projects the CBN governor said are valued at N23.20 billion, comprising 14 in the manufacturing sector, 12 in the agricultural sector, and 2 in the healthcare sector.

He also revealed that the projects are expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate about US$125.80 million in foreign exchange earnings.

According to the CBN, eligible applicants under the 100 for 100 PPP initiative were required to submit their applications to their banks, after which, a notification is submitted on a dedicated portal – https://100for100ppp.ng, which was created to ensure transparency and allow applicants track the status of their applications.

The set-out selection criteria are categorised into: production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.

“Based on these criteria, companies in priority sectors including agriculture, energy, healthcare, manufacturing, and services sectors will be screened and 100 companies selected to receive funding from the CBN every 100 days, beginning from 1st November 2021,” it stated.

In his remark, Chris Ngige, the Minister for Labour and Productivity said the 100 for 100 PPP initiative aligns with the government’s desire to lift 100 million Nigerians out of poverty.

According to him, the proliferation of ethnic militants like the Avengers, IPOB, Boko Haram and others was as a result of youth unemployment.

“We have not adequately diversified, we have to change the narrative, while the fiscal and monetary authorities should harmonize their efforts,” he said.

Herbert Wigwe, managing director of Access Bank speaking for the banks, assured that all participating banks are ready to support the initiative with all the resources at their disposal.