The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, announced on Monday that 28 companies that scaled through the screening process for the 100 for 100 Policy for Production and Productivity (PPP) would be supported with N23.20 billion to execute their projects under the first phase of the policy.
Emiefele, who made this disclosure during the official launching of the PPP in Abuja, said the companies were approved for the funding support following due screening of the several applications received from enterprises during the period the application was opened.
He disclosed that the projects were valued at N23.20 billion, and comprised 14 in the manufacturing sector, 12 in the agricultural sector, and two in the healthcare sector.
The CBN Governor elaborated: “Specifically, for this first cycle of the initiative ending today, 243 applications valued at N321.06 billion, spread over key sectors such as agriculture, energy, healthcare, manufacturing, and services sectors were submitted on the portal.
“After much engagement, 79 applications were received from banks, valued at N121.87 billion, for projects in six (6) sectors, namely agriculture, energy, healthcare, manufacturing, mining, and services sectors. The requests were carefully screened and scrutinized against a set-out selection criteria, which is categorised into: production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.
“Your Excellencies, distinguished ladies and gentlemen, following due screening of the applications received, I am pleased to inform you that 28 companies with projects that have clearly articulated proposals were selected for funding.
“These projects, valued at N23.20 billion, comprise 14 in the manufacturing sector, 12 in the agricultural sector, and 2 in the healthcare sector. When fully operational, these projects are expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate close to US$125.80 million in foreign exchange earnings. It is important to note that five (5) of the selected projects are greenfield projects seeking to exploit the huge opportunities in key sectors of our economy.
“When fully operational, these projects are expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate close to US$125.80 million in foreign exchange earnings”, Emefiele projected.
Speaking on the various intervention programmes of the apex bank targeted at catalysing production and productivity in the real sector of the nation’s economy, the CBN Governor listed key among the programmes as including, the N1.0 trillion Real Sector Facility (RSF), Real Sector Support Facility (RSSF), Anchor Borrowers’ Programme (ABP), Commercial Agriculture Credit Scheme (CACS), Non-Oil Export Stimulation Facility (NESF), and Textile Sector Intervention Facility (TSIF).
According to him, the programmes and schemes have proven to be effective in expanding credit and stimulating investments in the real sector.
For instance, Emefiele disclosed that under the N1.0 trillion Real Sector Facility, the Bank had released a total of N1.40 trillion to 331 real sector projects in agriculture, manufacturing, mining, and services sectors and that under its Real Sector Support Facility (RSSF), it had disbursed N166.21 billion to 25 projects.
Similarly, he confirmed that in the agricultural sector, the Bank had under its Anchor Borrowers’ Programme (ABP) disbursed N927.94 billion to over 4.5 million smallholder farmers for the cultivation of 21 commodities just as it also financed 666 large-scale agricultural projects with the potential of creating an estimated 70,070 direct and indirect jobs under its Commercial Agriculture Credit Scheme (CACS).
The 100 for 100 Policy for Production and Productivity (PPP), is an intervention of the apex bank designed to stimulate investments in Nigeria’s priority sectors with the core objective of boosting production and productivity, which will aid our efforts to stimulate greater growth of our economy and create employment opportunities.
Under this initiative, every 100 days, manufacturers in critical sectors that seek to engage in Greenfield projects or in expanding their existing facilities will have access to cheaper forms of credit at single digit rates, as well as foreign exchange to procure plants and machineries.
