Barring any last minute change, the Central Bank of Nigeria (CBN) will on Monday announce names of the first batch of successful private sector companies’ applicants for the 100 for 100 Policy on Production and Productivity (PPP).
Indication of the imminent announcement emerged last week when the Central Bank of Nigeria Governor, Mr Godwin Emefiele said, “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.”
It will be recalled that in an effort to stimulate the flow of credit to the real sector of the economy in order to reverse the nation’s over-reliance on import, the Central Bank of Nigeria introduced the 100 for 100 Policy on Production and Productivity (PPP).
The flow of finance and investments is targeted at enterprises and projects with potential to kick-start a sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
The guidelines for implementation of the 100 for 100 PPP issued via DFD/DIR/PUB/CIR/01/002 of November 1, 2021, states in part: “In furtherance of its core mandates of delivering price and financial system stability, and promoting sustainable economic development, the 100 for 100 Policy on Production and Productivity (PPP) is introduced by the Central Bank of Nigeria (CBN) to stimulate investments in Nigeria’s manufacturing sector with the core objective of boosting production and productivity, necessary to transform and catalyse the productive base of the economy.
“The overarching goal of the initiative is to reverse the nation’s over reliance on import.
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“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.
“Quarterly, starting from 1st November 2021, the initiative shall select 100 private sector companies with projects that have 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 shall be bank-led, will be rolled over every 100 days (that is, quarterly) with new set of companies selected for financing under the initiative.
“The initiative shall be implemented in collaboration with relevant stakeholders with focus on micro and macroeconomic impacts, in terms of contribution to GDP and exports, sustainable jobs created, local content development, production output, and capacity utilisation and integration into the global value chain.”
The broad objective of the initiative is to reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports the right projects with potential to transform and catalyse the productive base of the economy.
This includes: to catalyse import substitution of targeted commodities; increase local production and productivity; increase non-oil exports; and improve foreign exchange earning capacity of the economy, among others.
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