The Central Bank of Nigeria (CBN ) launched the 100 for 100 Policy on Production and Productivity (PPP) targeted at private companies who have a project to fund and can apply for as much as N5 billion under the scheme.
Once the apex bank can determine that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”, the company would be selected. The CBN would screen and finance eligible private sector companies in 100 days, and roll over every 100 days.
The initiative, 100 for 100 PPP, is a financial instrument designed to create the flow of finance and investments to enterprises with the potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
Read: How to apply and get loans from CBN’s Anchor Borrowers’ Programme
How it works
The Central Bank of Nigeria is prepared to select 100 private sector companies with projects that have the 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 would 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 initiative shall be funded from the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.
Read: Why NIRSAL/CBN may not approve your COVID-19 loan
The loan amount shall be a maximum of N5 billion per obligor and any amount above N5 billion shall require the special approval of CBN’s Management.
Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. The interest rate under the intervention shall not be more than 5.0% p.a. (all-inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% p.a. (all-inclusive) effective from 1st March 2022.
CBN would monitor the progress of the company.
Read: CBN promises manufacturers loans of not more than 9% rate
The Apex bank would set up comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) for selected companies including:
- Rate of Growth in production output
- Increase in capacity utilization
- Increase in export volume
- Increase in export value
- Decrease in industrial raw material import volume
- Decrease in industrial raw material import value
- Increase in the number of jobs generated
How to apply
Interested private-sector enterprises must submit applications to their PFIs together with the necessary documentation, which includes, among other things,
- Financial statements.
- Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)
- Three (3) years of audited financials, including the most recent management account of the company
- Evidence of the company’s, promoters’, and directors’ creditworthiness
- At least two (2) credit reports of the company and the directors;
- Business plan of the underlying project for which the facility is to be applied
- Detailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creation
- Increased capacity utilisation, production output, productivity/efficiency level, employment level, export capability, and value creation after funding should be projected to represent the project’s post-financing economic benefits.
Read: Companies declare massive profits on the back of CBN Intervention loans
Applicants shall notify the CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng)
Here is the process your application would take before approval
Once the lending bank receives your applications, due diligence on them based on business and credit would be conducted.
After which, the lending bank would forward the applications of their eligible private sector companies to the CBN for approval by the appropriate PFI’s Credit Committee.
The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.
The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies and successful beneficiaries would be published in National dailies for Nigerians to verify and confirm with details of facility granted, operating sector, manufacturing activities financed, and PFI.
That is one good step forward towards good development
Many are with 1st degree without those requirements. Yet they also need to be involved give us the way out or make another simple provision from the national level
Once again, the critical segment – the youths and SMEs, has been screened out.
Either our economic managers don’t understand the needs and challenges of this section of our economy or they do, but don’t want to address it.
Solutions that works for me should be for my problems and not to create imaginary solutions for some imagined problems and expect me to adjust my problems to suit some imagined solutions. I don’t know how that works.
Our CBN should realize that challenges facing these companies has nothing to do with working capital, in most cases.
Lack of infrastructure and ease of doing business is the key problem.
It costs about $4000/100kgs to export goods from most African countries.. here it costs about $35,000/100kgs.
Lack of adequate public power supply, Forex .. multiple taxation, bad road, security etc .. are more destructive challenges to businesses than working capital.
With this difficult long list of requirements, on a few companies that probably doesn’t need the money will qualify.
The greater danger of the selected companies sinking into deeper debt is highly possible due to the real challenges I mentioned.
Can cooperative societies apply for this loan
Then you ‘re not ready to empower local ideas and productivitie ups with this long list of requirements. I need at least 5m naira loan to start my paints production. 08070688908 please call now I have waited for too long.
Then you ‘re not ready to empower local ideas and productivitie ups with this long list of requirements. I need at least 5m naira loan to start my paints production. 08070688908 please call now I have waited for too long.
Reply
Loan of 5m Naira sir
I wish to apply for loan for my besiness car besiness in Lagos Okokomiako
PPP loan
Pls sir,I wish to apply for 5 million loan for my poultry business
Help me CBN loan
Help me CAN loan
Loan
Good deployment
Very good initiative, but the challenge is, is there any business in nigeria that will not need importation of some form of machineries that will enhance production of any innovative/ ideas that will boost nigeria economy?. Fine, we can get local input materials in nigeria but machine?. CBN pls review the condition to get the loan. Thank you.
Loan
how to I get it 5 billion dolars in CBN
The CBN and federal government is making it difficult for us to grow our business through loans. I need 5M naira to grow my poultry and fish farming business here in Rivers state, I’ve applied for loans and yet can’t get any. It’s frustrating
very good programmes
Is a good ideal and plan but my question is that? What about those graduated student that has a business but doesn’t ve enough money to register with CAC. What are the way you can help them.
Please Remember me for the loan
Please how can I apply for the loan
How can I get the loan
Sir with due respect, sir I want apply for the loan of 10
Millions naira for my clothing brand
Thank you sir
Your faithfully yusuf Ahmad Sani
Cbn graduate loan for SME farming and agriculture is guinean deal under the administration of mahammadu buhari
Hw can i apply for c b n loan
it is a very good idea
Its a very good idea