CBN 100 for 100 Loan Begins – 31 companies Benefits

The Central Bank of Nigeria (CBN) has disbursed over N29 billion to companies that applied for the 100 for 100 Policy on Production and Productivity (PPP).

This program, which began on November 1, 2021, will pick 100 private sector enterprises with initiatives that have the potential to considerably increase local productivity and Nigeria’s ability to generate foreign exchange.

The 100 for 100 PPP project is a financial instrument that aims to increase the flow of money and investments to firms that have the ability to catalyze long-term economic growth, accelerate structural transformation, promote diversification, and boost productivity.

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Hence, companies in need of funding for projects that will help the CBN achieve its goals can turn to the apex bank for help through the initiative.

What the CBN is saying

According to the communique from the apex bank’s recent Monetary Policy Committee (MPC) meeting, the CBN said, “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.”

CBN also financed agricultural projects under the CACS scheme as a means of combating food inflation. “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 get in on the action

If your company’s goals include catalyzing import substitution of targeted commodities, increasing local production and productivity, increasing non-oil exports, and improving the economy’s foreign exchange earning potential, you’re a good candidate for a CBN loan.

The next step would be to submit your application to commercial banks with requisite documentation, which includes:

• Evidence of company incorporation with Corporate Affairs Commission (CAC)
• Three years of audited financial reports.
• Evidence of the company’s creditworthiness, including its promoters and directors.
• A minimum of two credit reports of the company and directors.
• Business plan of the underlying project in need of financing.
• Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, value creation.
• Detailed report on the post-financing economic benefit of the project.
• Applicants shall notify CBN of submitted applications via a dedicated online portal https://100for100ppp.ng/ for tracking and monitoring application status.

What you should know

The project will be supported through the CBN’s Real Sector Support Facility-Differential Cash Reserve Requirement (RSFF-DCRR) window, as well as any other window determined by the Bank.

The 100 for 100 PPP initiative will include long-term loans for equipment and machinery purchases, as well as working capital loans. The maximum amount of money that can be borrowed under this project is N5 billion. For applications worth more than N5 billion, CBN approval is required.

Term loans must be paid off by December 31, 2031, and have a maximum tenor of 10 years, depending on the project’s complexity. The working capital agreement will be for a year, with the option to extend it for up to three years. Term loans will be subject to a two-year moratorium.

The CBN earlier released the list of 28 companies that received N23.2 billion from the first cycle of the 100 for 100 Policy on Production and Productivity (PPP).