Effective next month, the Central Bank of Nigeria (CBN), plans to support 100 firms in the first 100 days and hundreds more in the coming months, to boost local productivity, create wealth, to check importation responsible for Nigeria’s foreign exchange crisis.
Announcing the 100 for 100 PPP initiative yesterday, the CBN said that under this policy, it will advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning from November 1st. Also, the names of the successful companies will be published in newspapers for Nigerians to verify.
CBN Governor, Godwin Emefiele, who made the announcement at the official launch of the eNaira, Nigeria’s variant of the Central Bank Digital Currency (CBDC) at the State House in Abuja, explained that the Policy on Production and Productivity (PPP), expressed optimism that the move will reverse the country’s over-reliance on imports.
We believe that if we target and support the right companies and projects, we will see a significant, measurable and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in the FX-generating capacity of the economy.
He said: “After these 100 projects by companies in the first hundred days from November 1, we will take the next 100 companies/projects for another 100 days beginning February 1, 2022, and then another 100 companies for another 100 days beginning from May 1, 2022.
“We believe that if we target and support the right companies and projects, we will see a significant, measurable and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in the FX-generating capacity of the economy.
“This, in my view, is the best and most sustainable way to address the Naira’s value – whether in hard currency or digital eNaira – through production, production and more production.”
The PPP adds to the long list of initiatives launched by the apex bank in recent years to support Nigeria’s private sector, as it battles an importation-fuelled foreign exchange crisis that has sent the Naira crashing over 30 per cent in the last one year.
Emefiele said the new PPP initiative will be anchored in the Development Finance Department of the bank under his direct supervision.
“Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity and to immediately transform and jumpstart the productive base of the economy,” he said.