28 Companies Benefit N23.2bn Under CBN’s 100 for 100 PPP Scheme

Twenty-eight Nigerian firms have become beneficiaries of N23.2 billion loan provided under the Central Bank of Nigeria (CBN)’s 100 for 100 Policy on Production and Productivity (PPP).

The N23.2 billion fund was released after each company presented articulate project proposals for screening.

The CBN Governor, Godwin Emefiele noted that the projects comprising of those within the manufacturing sector, agricultural and health sector, are set to create over 20,000 direct and indirect jobs across all sectors of the economy as well as generate close to $125.8 billion foreign exchange.

“It is important to note that 5 of the projects are greenfield projects trying to explore the huge opportunities in key sectors of our economy,” he said.

Emefiele stated that under the new 100 for 100 PPP scheme, the private companies in critical sectors seeking to engage in greenfield projects or in expanding their existing facilities were ably qualified to apply for the N5 billion under the scheme.

They will also have access to cheaper forms of credit at single-digit rates, as well as foreign exchange to procure plants and machinery every 100 days, he said.

Investors King in November 2021 had reported that CBN capped the 100 for 100 policy loan on Production and Productivity (100 for 100 PPP) at N5 billion.

The governor revealed that for the first cycle of the initiative, about 243 applications valued at N321.06 billion,  were submitted on the initiative’s portal. The applications spread over key sectors such as agriculture, energy, healthcare, manufacturing, and services sectors.

“After much engagement,” he added, “79 applications were received from banks, valued at N121.87 billion, for projects in six sectors, namely agriculture, energy, healthcare, manufacturing, mining, and services sectors.”

The apex bank Governor disclosed that each request was carefully screened and scrutinised against set-out selection criteria, which is categorised into production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.

He noted that the CBN is ready to support those “seeking to invest in new greenfield or existing brownfield projects.” He said the apex bank will provide all the needed support, “both in Naira and dollars specifically for the importation of plants and equipment to actualise these investments.”

The governor clarified that the foreign exchange support will be for only importation of spares, plants and equipment needed to increase the production capacities of these firms.

“Let me emphasise that our mission through this initiative is to ensure that priority is accorded to companies who display verifiable progress in our imports substitution and job creation drive.”

The CBN boss announced that the apex bank would be unveiling a new FX bidding regime that is market-driven, which also support companies that prioritize the initiative’s local production and job creation drive.

He also listed other intervention programmes of CBN and the funds released under them. Under the first Programme, the “N1 trillion Real Sector Facility, the Bank has released a total of N1.40 trillion to 331 real sector projects in agriculture, manufacturing, mining, and services sectors.”

In the second scheme, the Real Sector Support Facility (RSSF), Emefiele said the CBN disbursed N166.21 billion to 25 projects.

“In the agricultural sector, the Bank’s Anchor Borrowers’ Programme (ABP) has disbursed N927.94 billion to over 4.5 million smallholder farmers for the cultivation of 21 commodities across the country. 

“Also, the Bank has financed 666 large-scale agricultural projects with the potential of creating an estimated 70,070 direct and indirect jobs under its Commercial Agriculture Credit Scheme (CACS),” he added.

Emefiele in his speech appealed to all prospective investors to take advantage of the great opportunities provided for investment in the real sector under the 100 PPP initiative. He advised investors to approach their banks to submit applications to access funding under the initiative.

The next cycle for the submission of “the 100 PPP starts from Feb 1 to April 30,” he added.

Remarking that the initiative will help eradicate poverty ensure wealth creation and provide job opportunities, the Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, represented by the Permanent Secretary Ecological Office, Dr Habiba Lawal commended the scheme.

A beneficiary, Mr Adedolapo Adeyemi of Harvest Feed and Agro Processing Limited said the new CBN scheme has helped his company expand its production. “We are going to buy a machine that will boost production by 60% and create 300 jobs,” Adeyemi said.

On his part, the President Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed praised the CBN for the initiative, stating that it was in line with President Muhammadu Buhari’s mantra of “producing what we eat and eating what we produce“.