CBN releases N114bn under 100-for-100 policy
March 7, 2023228 views0 comments
By Cynthia Ezekwe
The Central Bank of Nigeria (CBN) says it has disbursed N114.17 billion to beneficiaries under its 100 for 100 Policy on Production and Productivity (PPP) following the commencement of the intervention.
Godwin Emefiele, the governor of the apex bank disclosed this recently in a communiqué after the last monetary policy committee meeting held in Abuja.
According to Emefiele, the funds were utilised on 71 projects across healthcare, manufacturing and agriculture sectors.
The 100 for 100 Policy on Production and Productivity (PPP) was introduced by the Central Bank of Nigeria, to stimulate investments in Nigeria’s manufacturing sector with the core objective of boosting production and productivity, necessary to transform and catalyse the productive base of the economy.
The financial instrument was designed, and launched in January 2022 to create the flow of finance and investments to enterprises with potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
According to the apex bank, 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 potential to transform and catalyse the productive base of the economy.
The guidelines for the implementation of the initiative showed that the CBN fixed the maximum loan amount that a participant could get at N5 billion, adding that the initiative shall be bank-led, and will be rolled over every 100 days, with a new set of companies selected for financing under the initiative.
The CBN, which collaborated with relevant stakeholders, said the initiative was implemented with a focus on micro- and macro-economic impacts, including the creation of sustainable jobs, the development of local content, production output, capacity utilisation and integration into global value chains.