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CBN offers N5bn quick loans for economic diversification

CBN Headquarters

The Central Bank of Nigeria (CBN), has said a maximum loan of N5 billion per debtor would be approved under its “Production and Productivity” initiative, under the project “100 projects for EVERY 100 days.”  

According to the guidelines for accessing the loan posted on its official website, the initiative is designed to support the Federal Government’s push to boost productivity and economic diversification.

It added that any amount above the N5 billion would require special approval of CBN’s Management.

CBN also explained that the credit line is a long-term loan for the acquisition of plant and machinery, as well as working capital.

It said: “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.

“It is a support to private sector companies with the objective of reducing certain imports, increasing non-oil exports and improving the economy’s ability to generate foreign exchange.”

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.

According to the CBN, the overall objective of the initiative is to reverse the nation’s excessive dependence on imports by creating an ecosystem that targets and supports projects with the potential to transform and catalyse the productive base of the economy.

“Specific objectives include: catalysing import substitution for specific commodities; increase local production and productivity; increase non-oil exports; and improve the economy’s ability to generate foreign exchange,”

It added that under the initiative, comprehensive and regular monitoring of specific benchmarks and key performance indicators (KPIs) would be carried out on a regular basis.

“The KPIs will include the increased production of the financed companies; percentage increase in capacity utilization and percentage increase in the volume and value of exports. It will also include a decrease in the volume of imports and the value of industrial raw materials and an increase in the number of jobs created,” said the main bank.

 It further said that the focal activities will be businesses and existing projects (brownfield) with the potential to transform and reactivate the productive base of the economy.

These include manufacturing, agriculture, and agricultural processing; extractive, petrochemical and renewable energy industries; medical and pharmaceutical care, logistics services and trade-related infrastructure; and any other activity that is prescribed,” affirmed the CBN.

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