CBN issues framework to empower 100 companies for improved productivity

*The Central Bank of Nigeria has released an operational framework to guide interested companies participating in its 100 for 100 Policy on Production and Productivity initiative to significantly scale up local production and consumption as well as exports

Isola Moses | ConsumerConnect

In its commitment to initiating a fresh financial instrument to boost local production and productivity in various sectors of the economy, the Central Bank of Nigeria (CBN) has activated the 100 for 100 Policy on Production and Productivity (PPP) with the launch of an operational framework to guide interested companies in participating in the initiative.

ConsumerConnect reports the Bankers’ Bank released the framework Sunday, October 31, 2021, contains the requirements which any interested companies must meet to qualify for the programme.

Participants in one of CBN Entrepreneurship Development Centres in Nigeria   Photo:OgbongeBlog

The CBN stated in the document: “This is the operational framework for a robust and transparent process for identifying and selecting high-impact companies and projects under the CBN’s 100 for 100 PPP.

“These are projects that must catalyse sustainable employment-led economic growth through increased domestic production and productivity in the near term.”

The document also noted “the projects for consideration shall be new projects in existing companies requiring new machinery and other support and must have the greatest potential to achieve significant scale in their in-country production and for domestic consumption and exports.”

Mr. Godwin Emefiele, Governor of CBN, at the recent launch of the e-Naira at the State House, Abuja, FCT, had announced plans to introduce a new financial instrument to boost local production and productivity in various sectors of the Nigerian economy.

The Governor of CBN also indicated the instrument is expected to enhance local entrepreneurship and reverse the West African country’s over-reliance on imports.

Acccording to him, 100 for 100 PPP initiative will be anchored on the Development Finance Department of the Bank under the direct supervision of the CBN Governor.

The initiative, Emefiele noted, was based on the conviction that with the right support, the country would begin to 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 foreign exchange-generating capacity of the economy.”

Under this policy, Emefiele said the CBN would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days.

In the framework, the CBN noted that the selection criteria for participation under the CBN’s 100 for 100 PPP would be premised on immediate contribution to economic growth, jobs creation, and social impact.

The criteria to be used in the selection process would be evidence-based, transparent and measurable, the framework also indicated.

The Bank further stated that it would among other things provide naira intervention funding as well as foreign exchange for selected companies to purchase new machinery.

It added: “This instrument is for only new projects; it will not cover any refinance of existing facilities and will be subject to independent evaluation by international audit firms.

“All intervention under this project will be made public and published in national dailies.”