CBN loans N29b to 31 firms for productivity and forex

CBN loans N29b to them under its 100 for 100 PPP

By Jeph Ajobaju, Chief Copy Editor

A total of 31 companies have received N29 billion loans from the Central Bank of Nigeria (CBN) under its100 for 100 Policy on Production and Productivity (PPP) launched on 1 November 2021 to raise output for local consumption and export.

PPP is a financial instrument of the CBN to increase the flow of money and investment to firms that can crystallize long-term economic growth, accelerate structural transformation, promote diversification, and lift productivity.

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The scheme targets 100 private sector enterprises with potential to considerably increase productivity and earn foreign exchange (forex or FX).

Companies seeking funding for projects can apply for a CBN under the scheme which the bank wants to use to achieve its aim of growing the economy.

“Under the 100 for 100 Policy on Production and Productivity (PPP), the Bank has disbursed the sum of N29.51 billion to 31 projects, comprising 16 in manufacturing, 13 in agriculture, and 2 in healthcare,” its Monetary Policy Committee ( MPC) said.

“The Bank also released N19.15 billion to finance 5 large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS), bringing the total disbursements under the Scheme to N735.17 billion for 671 projects in agro-production and agro-processing .”


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How to apply for PPP loan

Your company has to focus on import substitution, increasing local output and productivity, increasing non-oil exports, and improving forex earning potential.

Submit your application to a bank with documentation that includes:

  • Evidence of company incorporation with the Corporate Affairs Commission (CAC)
  • Three years of audited financial reports.
  • Evidence of company’s creditworthiness, including promoters and directors.
  • A minimum of two credit reports of the company and directors.
  • Business plan of the project in need of financing.
  • Detailed status report on capacity utilization of the project, production output, productivity/efficiency level, employment level, value creation.
  • Detailed report on the post-financing economic benefit of the project.
  • Notify CBN of submitted application via for tracking and monitoring application status.

Other PPP loan conditions

The project will be supported through the Real Sector Support Facility-Differential Cash Reserve Requirement (RSFF-DCRR) and any other window of the CBN, according to the CBN, per Nairametrics reporting.

The scheme includes long-term loans for equipment and machinery as well as working capital loans.

Maximum amount borrowable is N5 billion. CBN approval is required for applications worth more than N5 billion.

Term loans must be paid off by 31 December 2031 and have a maximum tenor of 10 years, depending on the complexity of the project.

Working capital agreement is for one year, with option to extend it to three years.

Term loans are subject to a moratorium of two years.

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