The Central Bank of Nigeria (CBN) has announced the criteria for private sector companies to be considered for participation in the 100 for 100 Policy on Production and Productivity (PPP).
According to the CBN, participants in the PPP will be selected based on their immediate contribution to economic growth, job creation, and social impact.
The CBN stated that key areas such as production efficiency, scalability, historical financial performance (three years audited report of the company), viability of the business, credit-worthiness of directors, contribution to GDP potential, share of domestic market, foreign exchange earning potential, ease of exports, and other criteria will be used in selecting companies and projects.
The new CBN’s 100 for 100 financial instrument aims to reduce the country’s reliance on imports by establishing a platform that identifies and supports the right companies and projects that have the potential to transform and jumpstart the economy’s productive base.
The CBN also added that the 100 for 100 PPP intervention will provide Naira Intervention funding through existing CBN intervention processes, as well as complete FX 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).
To complement and propel the initiative, the CBN said it will work with fiscal authorities to facilitate power sector, port, and export reforms, as well as ease of doing business, to improve Nigeria’s competitiveness.