The Central Bank of Nigeria (CBN), yesterday kicked off the commencement of its 100 for 100 Policy for Production and Productivity (PPP) with just 28 firms, which secured N23.20 billion loan.
This however falls short of the 100 companies expected to emerge every 100 days beginning from November 1, 2021, to significantly accelerate manufacturing output, enhance job creation, and promote further economic diversification to fast track growth of non-oil exports.
Recall that the CBN unveiled the PPP policy on October 25, in which private sector companies are encouraged to apply for up to N5 billion to fund their projects.
The 28 beneficiary firms whose cheques were presented at an official ceremony through seven participating banks comprise 14 in manufacturing, 12 in agricultural, and two healthcare firms spread across four velour sectors of the economy respectively.
Speaking at the launch, CBN Governor, Godwin Emefiele, said: “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.
“The projects valued at N23.20 billion comprise those within the manufacturing sector, agricultural and health sector. These projects are to create over 20,000 direct and indirect jobs across all sectors of the economy as well as generate close to $125.8 billion foreign exchange.
“It is important to note that five of the projects are greenfield projects trying to explore the huge opportunities in key sectors of our economy.
“The Next cycle for the submission of the 100 PPP starts from February 1 to April 30. I want investors to take advantage of the investment under the PPP.”
These projects are to create over 20,000 direct and indirect jobs across all sectors of the economy as well as generate close to $125.8 billion foreign exchange.
New FX bidding regime
The flag-off of the 10o for 100 policy comes as the CBN also promised to unveil a new foreign exchange (FX) bidding regime that is market-driven and supports companies that accord utmost priority for local production and job creation drive.
To this end, Emefiele said the apex bank will engage deposit money banks (DMBs) on ways to support businesses that export and remit their proceeds to Nigeria.
This is just as he charged the beneficiaries “to judiciously use the funds for the purpose to which they have indicated, as there are independent monitors and evaluators on the regular basis to see the progress of the projects.”
