CBN Provides N23.2bn Loans To 28 Firms, Plans New Forex Bidding Initiative

The Central Bank of Nigeria has provided the sum of N23.2bn to 28 companies whose articulated projects scaled the apex bank ‘s screening for 100 for 100 Policy for Production and Productivity.

This came as the apex bank promised to unveil a new forex bidding regime that is market-driven and supports companies that accord utmost priority for local production and job creation drive.

The CBN Governor, Mr Godwin Emefiele, said the apex bank will engage Deposit Money Banks on the ways to support businesses that export and remit their proceeds to the country

The 28 beneficiaries’ firms whose cheques were presented on Monday in Abuja through seven participating financial institutions, comprise 14 manufacturing firms, 12 agricultural companies, and two healthcare firms

The PPP is CBN’s policy initiative unveiled last year at the launch of the E-naira initiative to significantly accelerate manufacturing output, promote further diversification of the nation’s economy to enable faster growth of non-oil exports.

Under the policy, eligible companies in priority sectors are to bescreened and 100 companies will be selected to receive funding from the CBN every 100 days, beginning from November 1 2021.

The selection of subsequent beneficiaries will be rolled over every 100 days with new sets of 100 companies

Speaking at the maiden unveiling of the first batch of PPP beneficiaries, Emefiele said funding projects under the PPP were expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate close to $125.8m in foreign exchange earnings.

Five of the selected projects, according to the CBN governor, are greenfield projects seeking to explore the huge opportunities in key sectors of the economy.

He said: “For this first cycle of the initiative ending today, 243 applications valued at N321.06bn, 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 N121.87bn, for
projects in six 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.

“The requests were carefully screened and scrutinized against a set-out selection criteria, which is categorized into: production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.”

While appealing to beneficiaries of PPP policy to note that the facility is not a grant but a repayable loan, he said the next cycle for submission of applications for the 100 for 100 Policy for Production and Productivity (PPP) will start tomorrow, February 1, 2022, and will end on April 30, 2022.

He appealed to all prospective investors to take advantage of the huge opportunities provided for investments in the real sector under the PPP and approach their banks to submit their applications for
participation under the initiative.

“The program of import substitution we should also sit to think of the best ways to diversify our foreign exchange earnings based in the country and we think that Nigeria with all the opportunities and
potentials, there is the need for us to look into export stimulation again in Nigeria.

“There are so many products in Nigeria and I mean finished products that end up in different markets in different parts of the world but unfortunately, we find that those companies that produce those goods here in Nigeria do not earn the foreign exchange for those items that get exported out of the country.

“Again, I would like to use the word that we suspect may have been illegally exported and that is why those companies are not getting the FX revenue.

“We will be engaging the banks at the next bankers committee to see to how we will make sure that all export transactions are properly recorded, and that proceeds coming to help to boost even our export earnings and support local production”, Emefiele said

In a goodwill message, Minister of labour and employment, Dr. Chris Ngige described productivity as the backbone of the economy.

He applauded CBN interventions in all facets of the economy.

President of the Manufactures Association of Nigeria (MAN) Engr. Mansur Ahmed lauded the CBN support of the real sector of the economy in the last seven years under Emefiele to encourage Nigerians first to grow their product and to transform those products into the things they consume.