Under the New Policy, the apex bank plans to advertise, screen, scrutinize and financially support 100 targeted private sector companies within 100 calendar days periods (“Investment Cycle”), commencing from 1st November 2021. Each Investment cycle shall capture a new set of 100 companies selected for financing under the initiative.
The initiative would be funded by the CBN from its Real Sector Support Facility – Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window it decides to use.
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 potential to transform and catalyze the productive base of the economy. The specific objectives include:
80 percent of jobs created by such projects must be for Nigerians while 50 percent of raw materials for the project must be sourced locally.
Requirements for consideration
The activities of the project to be must be in either manufacturing, agriculture and Agro-processing, extractive industries, petrochemicals and renewable energy or healthcare and pharmaceuticals.
Other activities such as logistics services and trade-related infrastructure such as cold chain solution, quality assurance infrastructure; and any other activities as may be prescribed by the CBN.
A highly satisfactory project should meet stipulated requirements by 81 to 100 per cent; a satisfactory project meets stipulated requirements by 61 to 80 per cent; a less satisfactory project meets stipulated requirements by 51 to 60 per cent while an unsatisfactory project meets stipulated requirements by zero to 50 percent.
Interested companies with satisfactory performance are required to apply through their banks to the CBN department of development finance, office of the governor, Central Bank of Nigeria, central business district, Abuja with complete documentation.
Applicants shall notify the CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng).
The New Policy is a welcome development and a step forward towards improving businesses in Nigeria. We envisage that through the New Policy, the CBN will encourage investments, stimulate growth in local production, and ultimately improve the economy.