The Central Bank of Nigeria launched the 100 percent policy on production and productivity with the unveiling of an operational framework to guide companies interested in participating in the initiative.
The framework that was released on Sunday revealed the conditions that interested companies must meet to qualify for the program.
“This is the operational framework for a robust and transparent process of identifying and selecting high impact companies and projects under the CBN 100 percent PPP.
“These are projects that must catalyze sustainable employment-oriented economic growth through increased domestic production and productivity in the short term,” the framework reads in part.
“The projects to be considered must be new projects in existing businesses requiring new machinery and other support and must have the greatest potential to achieve significant scale in their production in the country and for domestic consumption and exports.” , he added.
The governor of the CBN, Godwin Emefiele, had at the launch of the eNaira announced his intention to introduce a new financial instrument to stimulate local production and productivity in various sectors of the economy.
According to the governor, the instrument should reverse Nigeria’s excessive dependence on imports.
The PPP initiative, Emefiele said, would be anchored in the umbrella bank’s development finance department under the direct supervision of the CBN governor.
Emefiele said the initiative was based on the belief that with the right support the country would begin to see “a significant, measurable and verifiable increase in local production and productivity, a reduction in some imports, an increase in non-oil exports and improvements in the economy’s foreign exchange generating capacity.
As part of the policy, Emefiele said the CBN would advertise, screen, review and financially support 100 targeted private sector companies in 100 days.
In the framework, the CBN noted that the selection criteria for CBN’s 100 percent PPP participation would be based on immediate contribution to economic growth, job creation and social impact.
He added that the criteria to be used in the selection process would be evidence-based, transparent and measurable.
The bank also said it would provide inter alia intervention financing in naira as well as foreign exchange to selected companies for the purchase of new machinery.
He also said: “This instrument is only intended for new projects; it will not cover any refinancing of existing installations and will be subject to an independent assessment by international audit firms. All the interventions within the framework of this project will be made public and published in the national dailies.
The umbrella bank assured that it will work with the tax authorities to facilitate reforms of the electricity sector, ports and exports as well as the ease of doing business to improve competitiveness in the country to complement and propel this initiative.
He added that candidate companies with satisfactory performance could apply through their banks as of Monday, November 1, 2021.
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