The banking industry regulator, the Central Bank of Nigeria (CBN), has released guidelines for its “Production and Productivity” initiative, through “100 projects for EVERY 100 days” project.
This is contained in a notice posted on its official website that the initiative was designed to support the Federal Government ‘s drive towards boosting productivity and economic diversification.
According to the apex bank the N5 billion per obligor is the maximum that would be approved under the initiative.
While noting anything above N5billion will need the approval of its management.
The facility which is basically a long-term loan for acquisition of plant and machinery, as well as working capital, according to CBN will create flow of finance and investments to enterprises with potential to kickstart sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
“It is a support to private sector companies with the aim of reducing certain imports, increasing non-oil exports and to improve the FX-generating capacity of the economy.”
The broad objective of the initiative is to reverse the nation’s over-reliance on imports by creating an ecosystem that targets and supports projects with potentials to transform and catalyse the productive base of the economy.
“The specific objectives include: catalyse import substitution of targeted commodities; increase local production and productivity; increase non-oil exports; and improve foreign exchange earning capacity of the economy,” it stated.
It explained that a comprehensive, regular monitoring of specific benchmarks and Key Performance Indicators (KPIs) under the initiative would be undertaken regularly.
“The KPIs shall include increase in production output of financed companies; percentage increase in capacity utilisation and percentage increase in export volume and value.
“It would also include decrease in import volume and value of industrial raw materials and Increase in the number of jobs created,” the apex bank stated.
It adocal activities shall be existing businesses and projects (brownfield) with potential to transform and jumpstart the productive base of the economy.
“These include manufacturing, agriculture and agro-processing; extractive industries, petro-chemicals and renewable energy; healthcare and pharmaceuticals, logistics services and trade-related infrastructure; and any other activities as may be prescribed.”
