CBN issues guidelines on ‘100 for 100’ Policy

09 Nov CBN issues guidelines on ‘100 for 100’ Policy

The Central Bank of Nigeria (CBN) has released the guidelines for the implementation of its 100 for 100 Policy on Production and Productivity policy.

The guidelines signed by the CBN Director, Development Finance Department, Mr. Yila Yusuf and posted on the bank’s website, shows that interest rate under the intervention shall be at not more than five per cent per annum (p.a) all inclusive, up to February 28, 2022, after which interest on the facility shall revert to nine per cent effective from March 1, 2022.

CBN Governor, Mr. Godwin Emefiele, last month unveiled the new financial instrument to boost support for selected private sector companies in the country.

According to him, the policy seeks to advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning from November 1, 2021, and rolling over every 100 days with new set of 100 companies.

Essentially, the framework seeks 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 central bank explained that the initiative shall be operated in the first instance for a period not exceeding December 31, 2031, depending on the complexity of the project.

The apex bank said 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.

It added that the initiative shall be implemented in line with the provisions of the guidelines for the implementation of the underlying intervention (RSSF¬DCRR) including the sanction regime.

The bank pointed out that the 100 for 100 PPP was also designed 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.