The Central Bank of Nigeria has launched the 100 for 100 Policy on Production and Productivity by releasing an operational framework to help interested enterprises participate in the project.
The framework, which was presented on Sunday, highlighted the requirements that interested companies must achieve in order to be eligible for the program.
“This is the operational framework for a strong and transparent process for identifying and selecting high-impact companies and projects as part of the CBN’s 100 for 100 PPP.”
“These are projects that, in the short term, must catalyze sustainable employment-led economic growth through increased domestic production and productivity,” the framework stated.
“The projects under consideration must be new projects in existing companies that require new machinery and other support, and they must have the greatest potential to achieve significant scale in their in-country production, as well as for domestic consumption and exports,” it added.
During the launch of the eNaira, CBN Governor Godwin Emefiele revealed plans to develop a new financial instrument to enhance local output and productivity in several areas of the economy.
According to the governor, the tool will help Nigeria reduce its dependency on imports.
Emefiele stated that the PPP effort would be rooted in the top bank’s Development Finance Department and would be directly overseen by the CBN governor.
Emefiele stated that the initiative was founded on the belief that with the right support, the country would see “a significant, measurable, and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in the economy’s foreign exchange-generating capacity.”
Emefiele stated that under this approach, the CBN would advertise, screen, scrutinize and financially support 100 targeted private sector enterprises in 100 days.
The CBN stated in the framework that participation in the CBN’s 100 for 100 PPP will be based on direct contributions to economic growth, job creation, and social impact.
It went on to say that the selection criteria would be evidence-based, transparent, and measurable.
The bank also stated that it will provide naira intervention money as well as foreign exchange to chosen enterprises in order for them to purchase new machinery.
It further stated that “this instrument is only for new projects; it will not cover any refinancing of existing facilities” and that it would be subject to an independent examination by international audit companies. All interventions undertaken as part of this initiative will be made public and publicized in national newspapers.
To complement and accelerate this move, the top bank pledged that it would engage with fiscal authorities to support power sector, port, and export reforms, as well as ease of doing business changes, to increase competitiveness in the country.
It went on to say that candidate enterprises with a good track record might apply through their banks beginning Monday, November 1, 2021.