The Central Bank of Nigeria (CBN ) launched the 100 for 100 Policy on Production and Productivity (PPP) targeted at private companies who have a project to fund and can apply for as much as N5 billion under the scheme.
The private company will be chosen if the apex bank can decide through “Performance Indicators (KPIs)” that it can have a significant impact on the economy. In 100 days, the CBN would screen and finance suitable private sector enterprises, with a 100-day rollover period.
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The 100 for 100 PPP project is a financial instrument that aims to increase the flow of money and investments to firms that have the ability to catalyse long-term economic growth, accelerate structural transformation, promote diversification, and boost productivity.
CBN’s N5 billion ” 100 for 100 PPP loan” How it works
The Nigerian Central Bank is ready to pick 100 private sector enterprises with projects that have the potential to considerably enhance domestic output and productivity, decrease imports, increase non-oil exports, and strengthen the Nigerian economy’s foreign exchange earning capabilities.
The programme, which will be headed by a bank, will be rolled over every 100 days (or quarterly) with a fresh set of enterprises picked for funding.
The project will be supported through the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other financing window that the CBN deems appropriate.
The loan amount per obligor shall not exceed N5 billion, and any amount in excess of N5 billion will require special permission from CBN Management.
The monthly interest on the facility will be amortised and transmitted to the CBN quarterly, along with principle repayments. The intervention’s interest rate will not exceed 5.0 percent per annum (all-inclusive) until February 28, 2022; following that, interest on the facility will revert to 9 percent per annum (all-inclusive) beginning March 1, 2022.
CBN would monitor the progress of the company.
For chosen enterprises, the Apex bank will set up extensive, regular monitoring of specified benchmarks and key performance indicators (KPIs), such as:
- Rate of Growth in production output
- Increase in capacity utilization
- Increase in export volume
- Increase in export value
- Decrease in industrial raw material import volume
- Decrease in industrial raw material import value
- Increase in the number of jobs generated
How to apply for CBN’s N5 billion ” 100 for 100 PPP loan”
Interested private-sector enterprises must submit applications to their PFIs together with the necessary documentation, which includes, among other things,
- Financial statements.
- Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)
- Three (3) years of audited financials, including the most recent management account of the company
- Evidence of the company’s, promoters’, and directors’ creditworthiness
- At least two (2) credit reports of the company and the directors;
- Business plan of the underlying project for which the facility is to be applied
- Detailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creation
- Increased capacity utilisation, production output, productivity/efficiency level, employment level, export capability, and value creation after funding should be projected to represent the project’s post-financing economic benefits.
Here is the process your application would take before approval
When the lending bank gets your applications, it will do due diligence on them based on business and credit.
The lending bank would then transmit the applications of their qualifying private sector enterprises to the CBN for approval by the PFI’s Credit Committee.
- CBN’s N5 billion ” 100 for 100 PPP loan”
In 100 days, the CBN would screen and finance suitable private sector enterprises, with a 100-day rollover period.
The CBN would release the approved cash to the PFI for onward disbursement to the designated private sector enterprises, with details of the facility given, operational sector, manufacturing activities sponsored, and PFI being published in national dailies for Nigerians to verify and confirm.