CBN releases N114bn under 100-for-100 policy: Boosting Production and Productivity in Nigeria
The Central Bank of Nigeria (CBN) has disbursed N114.17bn to 71 beneficiaries under its 100-for-100 Policy on Production and Productivity. This policy is an initiative aimed at boosting domestic production and productivity, reducing imports, and increasing non-oil exports.
Funds Expenditure on Healthcare, Manufacturing, and Agriculture Sectors
Governor Godwin Emefiele stated that the funds disbursed under the initiative were expended on 71 projects across healthcare, manufacturing and agriculture sectors. He also noted that the Bank had disbursed N20.78 billion to nine projects in healthcare, manufacturing, and services.
Programme Launched in January 2022
The CBN programme was launched in January 2022 for a select 100 private sector companies with projects that have the potential to significantly increase domestic production and productivity. The guidelines fixed the maximum loan amount that a participant could get at N5bn.
Bank-Led Initiative Rolled Over Every 100 Days
According to the guidelines for the implementation of the initiative, the programme will be bank-led and rolled over every 100 days (quarterly) with a new set of companies selected for financing under the initiative.
Collaboration with Relevant Stakeholders
In collaboration with relevant stakeholders, the initiative would be implemented with a focus on micro- and macro-economic impacts. This includes the creation of sustainable jobs, the development of local content, production output, capacity utilisation, and integration into global value chains.
Maximum Loan Amount and Special Approval
Loan amount shall be a maximum of N5bn per obligor. Any amount above N5bn shall require the special approval of CBN’s management.
Broad Objective of the Initiative
The broad objective of the initiative is to reverse the nation’s over-reliance on imports by creating an ecosystem that targets and supports the right projects with the potential to transform and catalyse the productive base of the economy.
Specific Objectives of the Initiative
Highlighting the specific objectives of the initiative, the CBN said it was designed to catalyse import substitution of targeted commodities, increase local production and productivity, increase non-oil exports, and improve the foreign exchange-earning capacity of the economy.
Existing and New Projects
Key activities covered under the initiative would be existing businesses and projects (brownfield) with the potential to immediately transform and catalyse the productive base of the economy. New projects (greenfield) with equal potential may be considered under the initiative, subject to CBN management’s approval.
In conclusion, the CBN’s 100-for-100 Policy on Production and Productivity is a timely intervention aimed at boosting domestic production and productivity, reducing imports, and increasing non-oil exports. With the funds disbursed so far, it is hoped that more companies in healthcare, manufacturing and agriculture sectors will benefit from the initiative, leading to sustainable job creation and overall improvements in the foreign exchange generating capacity of the Nigerian economy.
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