The CBN made this known in its guidelines for the implementation of the initiative which was released over the weekend.
According to it, “Quarterly, starting from November 1, 2021, the initiative shall select 100 private sector companies with projects that have potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.
“The initiative, which shall be bank-led, will be rolled over every 100 days (that is, quarterly) with a new set of companies selected for financing under the initiative.”
The apex bank explained further that the initiative would be implemented in collaboration with relevant stakeholders, with a focus on micro and macroeconomic impacts, in terms of contribution to GDP and exports, sustainable jobs created, local content development, production output, and capacity utilisation and integration into the global value chain.
It added: “Loan amount shall be a maximum of N5bn per obligor. Any amount above N5bn shall require the special approval of CBN’s management.”
The banking regulator noted that the interest rate under the intervention would be at not more than five per cent per annum (all inclusive) up to February 28, 2022, adding that interest on the facility would revert to nine per cent p.a. (all inclusive) effective from March 1, 2022.
The guidelines also read that the broad objective of the initiative is to reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports the right projects with the potential to transform and catalyse the productive base of the economy.
The CBN said it was designed to catalyse import substitution of targeted commodities, increase local production and productivity, increase non-oil exports, and improve foreign exchange-earning capacity of the economy.
The apex bank said focal activities covered under the initiative would be existing businesses and projects (brownfield) with the potential to immediately transform and catalyse the productive base of the economy, and new projects (greenfield) with equal potential may be considered under the initiative, subject to CBN management’s approval.
It added that activities could be in manufacturing, agriculture and agro-processing, extractive industries, petrochemicals and renewable energy, healthcare and pharmaceuticals.
The guidelines added that others are logistics services and trade-related infrastructure such as cold chain solution, quality assurance infrastructure; and any other activities as may be prescribed by the CBN.
Ford Foundation civil society partners, with support from the Ford Foundation, have convened a pivotal… Read More
As talks about reviewing the minimum wage for Nigerian workers continue, economic analysts have underscored… Read More
Shareholders associations in Nigeria have expressed support for plans by Nigerian Breweries Plc to raise… Read More
Inspired by my exchange with my dear friend Chidimma, a young lady who highlighted the… Read More
A 12-year-old, boy, Iremide Opeyemi, has drowned in a swimming pool at Grand Bank Link… Read More
As the global community celebrates this year's International Workers' Day, Japan Tobacco International Nigeria (JTI),… Read More
This website uses cookies.