CBN Unrolls New Financial Instrument To Support 100 Private Firms

AS part of efforts to boost industrialization and add value to Nigeria’s foreign exchange, Central Bank of Nigeria (CBN) has announced a plan to roll out a new financial instrument it called ‘The 100 for 100 PPP’ Policy aimed at encouraging local production in different sectors of the economy.

CBN Governor, Godwin Emefiele, disclosed this during the launch of the Central Bank Digital Currency, named eNaira.

Emefiele said the programme is to provide support for targeted private sector companies in the country in order to increase local production to a significant level and absolve the country of the burden of being an import-dependent economy.

The CBN Governor explained that the initiative is part of the bank’s policy drive to help add value to the Naira which he said has been on a steady free fall since 1986 when the International Monetary Fund (IMF) carried out Structural Adjustment Programme (SAP).

To ensure transparency in the selection of companies to benefit from the programme, Emefiele said, it will be anchored by the CBN Development Finance Department under his direct supervision.

He said, “Under this policy, the CBN will advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days beginning from November 1, 2021.

“Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity, and to immediately transform and jumpstart the productive base of the economy.

 “After these 100 projects by companies in the first hundred days from November 1, we will take the next 100 companies/projects for another 100 days beginning February 1, 2022, and then another 100 companies for another 100 days beginning from May 1, 2022.

”We believe that if we target and support the right companies and projects, we will see a significant, measurable and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in the FX-generating capacity of the economy.”

The apex bank boss said this type of economic intervention would help to alleviate the economic burden of the country.

“This in my view, we would be able to add to the Naira through production and more productions. We believe that if we target the right companies, with the right projects, we will see a significant increase in local production.”