The Central Bank of Nigeria on Wednesday released the list of approved applications for its 100 for 100 Policy for Production and Productivity (100 for 100 PPP) as at 28 January, 2022.
Total of 28 beneficiaries were listed by the apex bank, with a cumulative loan of N23,202,396,055.00.
The loans were issued through seven participating financial institutions with Zenith Bank issuing the largest amount valued at N9.214 billion. It was followed by Fidelity Bank with N5.701 billion and Stanbic IBTC with N3.343 billion. Other banks are Union Bank (2.386 billion), FCMB (N1.111 billion), Keystone bank (998.045 million), and Wema Bank (N450 million).
According to the list, the largest beneficiary, Salient Industries LTD in Lagos State received N2.50 billion from Zenith Bank for the purpose of “manufacturing of flexible pack” according to the list.
It was followed by Sarsoli Industrial Company Limited in Lagos State with a loan of N2 billion from Zenith bank for the purpose of “Calcium-carbonate manufacturing, Filler and black master batches”, and Diamond Super Sacks LTD with a loan of N2 billion from Fidelity Bank for the “acquisition of Woven Sacks & Polytwines making machine.”
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About 100 for 100 Policy for Production and Productivity
The Central Bank of Nigeria in November 2021 issued the guidelines the implementation of the 100 for 100 PPP which it said is to “stimulate the flow of credit to the real sector of the economy in order to reverse the nation’s over-reliance on import.”
The policy aims 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,” according to the CBN.
According to the guideline “Quarterly, starting from 1 st November 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 loan amount shall be a maximum of N5 billion per obligor. Any amount above N5 billion shall require the special approval of CBN’s Management.
The activities can be in any of the following:
- Manufacturing;
- Agriculture and agro-processing;
- Extractive industries;
- Petro-chemicals and renewable energy;
- Healthcare and pharmaceuticals
- Logistics services and trade-related infrastructure e.g. cold chain solution, quality assurance infrastructure; and
- Any other activities as may be prescribed by the CBN.
Interest rate under the intervention shall be at not 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.
For more detail visit Guidelines For The Implementation Of The 100 For 100 PPP (Policy on Production and Productivity).
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.