Apply for CBN’s N5 billion ‘100 for 100 PPP loan’

Apply for CBN’s N5 billion ‘100 for 100 PPP loan’

The biggest news today is that the Central Bank of Nigeria (CBN) has launched a 100 per 100 production and productivity (PPP) policy for private companies to finance the project, and up to  N5 billion can be applied for under the scheme. 

The company will be selected after the apex bank determines that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”. CBN will screen and finance eligible private sector companies in 100 days, and roll over every 100 days.

The initiative, 100 PPP for 100, is a financial instrument designed to create a flow of finance and investment for enterprises to catalyze sustainable economic growth trajectories, accelerate structural change, promote diversification and increase productivity. has the potential to improve.

How it works

The Central Bank of Nigeria stands ready to select 100 private sector companies whose projects could significantly increase domestic production and productivity, reduce imports, increase non-oil exports and enhance the foreign exchange capacity of the Nigerian economy, in general, can improve.

The initiative, led by the bank, will continue every 100 days (ie quarterly) and new companies will be selected for funding under the initiative.

The initiative is funded through the CBN Real Sector Support Facility Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window that can be identified by the CBN.

The loan amount cannot exceed N1 billion per borrower, and a loan amount over N5 billion must be specifically approved by CBN regulators.

The monthly interest on the measure is deducted and adjusted quarterly along with the rebate on CBN. Affected interest will not exceed 5.0% per annum. (inclusive) until 2022 Interest on the measure will be repaid up to 9% one year later. (all inclusive) valid from 1 March 2022

CBN will monitor the success of the company.

Apex Bank will establish a constant, continuous stream of specialized information and key operational indicators (KPIs) for selected companies, including:

• Production growth
• Make it usable
• Increase in export volume
• Increase export value
• Decrease in imports of industrial raw materials
• Destruction of imports of industrial raw materials
• Work harder

How to apply

Entrepreneurs must submit applications to their MFIs with the required documents, including.

• Financial information.
• Proof of company registration confirming the Company’s merger with the Association of Cooperatives (CAC)
• Three (3) years financial analysis, including current management of the company
• Company credentials, sponsors and creditworthiness of executives
• At least two (2) corporate and management credit reports;
• The business plan for the project below is expected to happen
• Details of resource utilization, design, production / operation, activity level, export capacity and design costs
• Increased capacity utilization, productivity, efficiency / effectiveness, activity levels, export capacity and post-financial efficiency should be planned to match the post-financial services project.

Here is the process your application would take before approval

Once the lending bank receives your applications, due diligence on them based on business and credit would be conducted.

After which, the lending bank would forward the applications of their eligible private sector companies to the CBN for approval by the appropriate PFI’s Credit Committee.

The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.

The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies and successful beneficiaries would be published in National dailies for Nigerians to verify and confirm with details of facility granted, operating sector, manufacturing activities financed, and PFI.