Nigeria’s Central Bank has allocated N114.17bn to beneficiaries under its 100-for-100 Policy on Production and Productivity, according to a communiqué issued by the CBN Governor, Godwin Emefiele, following the Monetary Policy Committee meeting in Abuja.
The funds have been spent on 71 projects in healthcare, manufacturing, agriculture and services sectors. The bank launched the programme in January 2022, with the aim of assisting 100 private sector firms to increase production, productivity and non-oil exports, and reduce imports.
The CBN has specified a maximum loan of N5bn per participant, with the loan facility to be rolled over every 100 days, and a new set of firms to be chosen for financing. The initiative will be implemented with a focus on micro- and macro-economic impacts, including sustainable job creation, local content development, production output, capacity utilisation and integration into global value chains.
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The guidelines specify that the programme is aimed at reversing the country’s over-reliance on imports by creating an ecosystem that targets and supports the right projects with the potential to catalyse the productive base of the economy. The initiative is designed to increase local production and productivity, catalyse import substitution of targeted commodities, improve the foreign exchange earning capacity of the economy and increase non-oil exports.
The CBN has stated that both existing businesses and projects (brownfield) and new projects (greenfield) with equal potential may be considered under the initiative, subject to the approval of CBN management. The guidelines further specify that any amount above N5bn will require the special approval of the CBN’s management.
In summary, Nigeria’s Central Bank has disbursed N114.17bn to 71 beneficiaries across healthcare, manufacturing, agriculture and services sectors, under its 100-for-100 Policy on Production and Productivity, launched in January 2022. The programme aims to increase local production and productivity, catalyse import substitution of targeted commodities, increase non-oil exports and improve the foreign exchange earning capacity of the economy. The CBN has specified a maximum loan of N5bn per participant, and a new set of firms will be chosen for financing every 100 days.