Nigeria’s apex Bank has announced selection criteria for private sector companies to participate in its new financial instrument tagged, “The 100 for 100 PPP – Policy on Production and Productivity,” which was announced last week.
How to apply for CBN ‘100 companies every 100 days’ project funding
In a two-page notice signed by its Development Finance Department, according to Thisday Newspaper reports, the Central Bank of Nigeria explained that the selection criteria for participation would be premised on the business’ immediate contribution to economic growth, jobs creation, and social impact.
It pointed out that in selecting the companies, evidence -based, transparent and measurable criteria shall be deployed.
According to the central bank, the move was to ensure the operational framework for a robust and transparent process for identifying and selecting high-impact companies and projects under its 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 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,” it stated.
The CBN restated that the broad objective of introducing the instrument was to reverse the nation’s over-reliance in imports, by creating a platform that targets and supports the right companies and projects with potential to immediately transform and jumpstart the productive base of the economy.
Shedding more light on the initiative, the CBN stated that the instrument shall provide naira intervention funding under existing CBN intervention processes and complete foreign exchange funding for new machinery.
“This instrument is for only new projects; 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. The CBN will work with fiscal authorities to facilitate power sector, port and export reforms as well as ease of doing business to improve competitiveness in Nigeria so as to complement and propel this initiative.
“Candidate companies with satisfactory performance are invited to apply through their banks effective, November 01, 2021, to the CBN Department of Development Finance, Office of CBN Governor,” it added.
CBN Governor, Mr. Godwin Emefiele, last week announced the new initiative, saying it was meant to stimulate activities in private sector companies in the country that would be selected.
Emefiele had said with the new initiative, CBN would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning from November 1.
Under the initiative, the CBN governor had said, a new set of 100 companies would be rolled out every 100 days and their names would be published in the national dailies for Nigerians to see and confirm.
He said the new initiative would be managed by the CBN Development Finance Department, under his direct supervision.
Emefiele explained, “Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity, and to immediately transform and jumpstart the productive base of the economy.