Nigeria: CBN ₦5bn ‘100 For 100 PPP Loan’ – Application Criteria

The Central Bank of Nigeria (CBN) recently announced the introduction of a policy on production and productivity (PPP) to be known as 100 for 100 PPP.

Through this policy, the apex bank intends to provide funds for interested and qualified private companies who will be able to get as much as ₦5 billion under the scheme.

Though companies that can prove they have the capacity to effectively utilize above ₦5 billion would also be considered and funding made available to them but only based on the special approval of CBN’s Management.

The broad objective of the initiative is to reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports projects with the potential to transform and catalyze the productive base of the economy.

According to information about the scheme, interest rate under the PPP 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.

Also, the participating companies will roll over every 100 days meaning new organizations that are qualified will have the opportunity to enter into the scheme every 100 days (quarterly basis).

Focal activities shall be existing businesses and projects (brownfield) with potential to transform and jumpstart the productive base of the economy such as:
i. Manufacturing
ii. Agriculture and agro-processing
iii. Extractive Industries
iv. Petro-Chemicals and Renewable Energy
v. Healthcare and Pharmaceuticals
vi. Logistics Services and Trade-Related Infrastructure
vii. Any other activities as may be prescribed

Documents to be submitted to the CBN for evaluation

1. Financial statements
2. Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)
3. Three (3) years of audited financials, including the most recent management account of the company
4. Evidence of the company’s, promoters’, and directors’ creditworthiness
5. At least two (2) credit reports of the company and the directors;
6. Business plan of the underlying project for which the facility is to be applied
7. Detailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creation.

Major monitoring criteria/KPI expected by the CBN

A comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) under the initiative shall be undertaken regularly by the CBN.

The KPIs (specific and relevant) shall include:
i. Percentage increase in production output of financed companies;
ii. Percentage increase in capacity utilisation;
iii. Percentage increase in export volume and value;
iv. Percentage decrease in import volume and value of industrial raw materials;
v. Increase in number of jobs created.

How successful companies will be identified

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.

The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector.

To read more information and apply, visit the portal here.