Finance

CBN unveils framework to empower 100 companies

Tinubu appoints ex-FRCN boss to probe CBN, Emefiele

The Central Bank of Nigeria has commenced the 100 for 100 Policy on Production and Productivity with the unveiling of an operational framework to guide interested companies in participating in the initiative.

The framework which was released on Sunday revealed the conditions interested companies must meet to qualify for the programme.

 “This is the operational framework for a robust and transparent process for identifying and selecting high-impact companies and projects under the CBN’s 100 for 100 PPP.

“These are projects that must catalyse sustainable employment-led economic growth through increased domestic production and productivity in the near term,” the framework read in part.

“The projects for consideration shall be new projects in existing companies requiring new machinery and other support and must have the greatest potential to achieve significant scale in their in-country production and for domestic consumption and exports,” it added.

The Governor, CBN, Godwin Emefiele, had during the launch of the eNaira announced plans to introduce a new financial instrument to boost local production and productivity in various sectors of the economy.

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According to the governor, the instrument is expected to reverse Nigeria’s over reliance on imports.

The PPP initiative, Emefiele said, would be anchored in the Development Finance Department of the apex bank under the direct supervision of the CBN governor.

Emefiele said the initiative was based on the conviction that with the right support, the country would begin to 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 foreign exchange-generating capacity of the economy.”

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Under this policy, Emefiele said the CBN would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days.

In the framework, the CBN noted that the selection criteria for participation under the CBN’s 100 for 100 PPP would be premised on immediate contribution to economic growth, jobs creation, and social impact.

It added that the criteria to be used in the selection process would be evidence-based, transparent and measurable.

The bank also said that it would among other things provide naira intervention funding as well as foreign exchange for selected companies to purchase new machinery.

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It also stated, “This instrument is for only new projects; it will not cover any refinance of existing facilities and will be subject to independent evaluation by international Audit firms. All intervention under this project will be made public and published in national dailies.

The apex bank assured that it would work with fiscal authorities to facilitate power sector, port and export reforms as well as ease of doing business to improve competitiveness in the country so as to complement and propel this initiative.

It added that candidate companies with satisfactory performance could apply through their banks effective from Monday, November 1, 2021.

Punch

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