By Tony Obiechina, Abuja
Twenty-eight companies whose articulated projects scaled Central Bank of Nigeria’s (CBN) screening for 100 for 100 Policy for Production and Productivity (PPP) have secured apex bank’s funding of N23.20 billion.
This is even as the apex bank has promised to unveil soon a new forex bidding regime that is market driven and supports companies that accord utmost priority for local production and job creation drive.
CBN governor, Godwin Emefiele who disclosed this at the launch of the Policy on Monday said the bank will engage DMBs on the ways to support businesses that export and remit their proceeds to the country.
The 28 beneficiary firms whose cheques were presented on Monday through seven participating financial institutions, comprise 14 manufacturing sector, 12 agricultural sector, and two healthcare firms spread across four velour sectors of the economy.
PPP is CBN’s policy initiative unveiled last year (25th October) at the launch of E-naira to significantly accelerate manufacturing output, promote further diversification of the nation’s economy to enable faster growth of both non-oil exports.
Under the policy, eligible companies in priority sectors are to be screened and 100 companies will be selected to receive funding from the CBN every 100 days, beginning from 1st November 2021. The selection of subsequent beneficiaries will be rolled over every 100 days with new sets of 100 companies and details of these companies will be published in the major national dailies.
Speaking at the maiden unveiling of the first batch of PPP beneficiaries, Emefiele said funding projects under PPP were expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate close to US$125.80 million in foreign exchange earnings.
Five of the selected projects, according to the CBN governor, are greenfield projects seeking to exploit the huge opportunities in key sectors of the economy.
The Governor said: “For this first cycle of the initiative ending today, 243 applications valued at N321.06 billion, 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 N121.87 billion, for
projects in six (6) 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 payable loan, he said the next cycle for submission of applications for the 100 for 100 Policy for Production and Productivity (PPP) will start on Tuesday, February 1, 2022, and will be end on April 30, 2022.
He appealed to all prospective investors to take advantage of the huge opportunities provided for investment in the real sector under the PP 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.
To present and prospective operators in the industrial sector, the Governor assured them of the Bank’s continued support, financial and otherwise, to fast-track the development of industrial sector, adding that, the bank will soon unveil a new FX bidding regime that is market driven and supports companies that accord utmost priority for local production and job creation drive.
“For those seeking to invest in new greenfield or existing brownfield projects, the bank will continue to provide all the needed support, both in Naira and dollars specifically for the importation of plants and equipment to actualize these investments. It is pertinent to point out that the foreign exchange support will be solely for the importation of spares, plants and equipment needed to increase production capacities of these companies.
“Let me emphasize that our mission through this initiative is to ensure that priority is accorded to companies who display verifiable progress in our import’s substitution and job creation drive. Consequently, we would soon unveil a new FX bidding regime that is market driven and support companies that accord utmost priority for our local production and job creation drive”, he 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.
He slammed critics of CBN for chastising it for intervening in all sectors. The Minister likened CBN role to the role of a center forward team player in a football match whose active role is required to win a
football match.
President of the Manufactures Association of Nigeria (MAN) Mansur Ahmed lauded CBN support of the real sector of the economy in the last seven years under Godwin Emefiele to encourage Nigerians first to grow their product and to transform those products into the things they consume.
Managing Director / CEO of Access Bank of Nigeria, Herbert Wigwe said CBN effort will help to expand DMBs performance.
“We will take responsibility to support and develop our economy. If we don’t develop our economy, nobody will do it for us. We stand ready as banks to support this initiative; for us as banks, this is a project
that we will embrace in totality”, Access Bank MD said.
Speaking on behalf of beneficiaries, MD of Harvest Filed Limited Mr. Adedolapo Adeyemi said the facility will assist in expanding his firm to acquire new plants, increase its capacity by 60 percent and employ an additional 300 people.
