CBN Offers Nigerians 5 Billion Naira In ‘100 For 100 PPP Loan’ (See How To Apply)

Nigerian apex bank, the Central Bank of Nigeria (CBN) has announced the introduction of a policy on production and productivity (PPP) to be known as 100 for 100 PPP.

Infoexpert24 reports that CBN intends to provide funds for interested and qualified private companies who will be able to get as much as 5 billion Naira under the scheme.

Though companies that can prove they have the capacity to effectively utilize above ₦5 billion would also be considered and funding made available to them but only based on the special approval of CBN’s Management.

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The broad objective of the initiative is to reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports projects with the potential to transform and catalyze the productive base of the economy.

According to information about the scheme, the interest rate under the PPP intervention shall not be more than 5.0% p.a. (all-inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% p.a. (all-inclusive) effective from 1st March 2022.

Also, the participating companies will roll over every 100 days meaning new organizations that are qualified will have the opportunity to enter into the scheme every 100 days (quarterly basis).

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Which companies/organizations are eligible to apply?
Focal activities shall be existing businesses and projects (brownfield) with the potential to transform and jumpstart the productive base of the economy such as:
i. Manufacturing
ii. Agriculture and agro-processing
iii. Extractive Industries
iv. Petro-Chemicals and Renewable Energy
v. Healthcare and Pharmaceuticals
vi. Logistics Services and Trade-Related Infrastructure
vii. Any other activities as may be prescribed

CBN Offers Nigerians 5 Billion Naira In ‘100 For 100 PPP Loan’ (See How To Apply)

Documents to be submitted to the CBN for evaluation
1. Financial statements
2. Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)
3. Three (3) years of audited financials, including the most recent management account of the company
4. Evidence of the company’s, promoters’, and directors’ creditworthiness
5. At least two (2) credit reports of the company and the directors;
6. Business plan of the underlying project for which the facility is to be applied
7. Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, export capacity, and value creation.

Major monitoring criteria/KPI expected by the CBN
Comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) under the initiative shall be undertaken regularly by the CBN.

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The KPIs (specific and relevant) shall include:

i. Percentage increase in production output of financed companies;
ii. Percentage increase in capacity utilization;
iii. Percentage increase in export volume and value;
iv. Percentage decrease in import volume and value of industrial raw materials;
v. Increase in the number of jobs created.

How successful companies will be identified

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.

Infoexpert24 understands that CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector.