28 firms get N23.2b CBN loan, after 21% rise in real sector facilities
By Jeph Ajobaju, Chief Copy Editor
Another N23.2 billion has been loaned to 28 firms by the Central Bank of Nigeria (CBN) in its growing advances to all sectors of the economy, including graduate entrepreneurship, agriculture, power, and the recent 21 per cent rise to the real sector.
CBN Governor Godwin Emefiele said the N23.2 billion was granted in loans as part of the new “100 for 100” Production and Productivity Policy (PPP).
He explained at the launch of the PPP in Abuja that the ultimate goal of the policy is to reverse reliance on imports by creating an echo system that targets and supports the right companies and projects.
The priority, he added, is to spur investment in key industries and increase both production and productivity to facilitate greater economic growth and possibilities.
Sectors listed to benefit from the PPP include agriculture, healthcare, manufacturing, logistics, services, trade-related infrastructure, and renewable energy.
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Low-cost finance
The CBN planned that beginning in November 2021 some 100 qualifying enterprises in priority sectors would receive funding every 100 days.
In the first instance, Emefiele said, 28 qualified enterprises were selected for funding, with projects totalling N23.2 billion; adding that the scheme will provide low-cost finance to both new and current productive ventures, per Nairametrics.
“Under this initiative, every 100 days, manufacturers in critical sectors that seek to engage in Greenfield projects, or in expanding their existing facilities will have access to cheaper forms of credit at single digit rates as well as foreign exchange to procure plants and machinery.
“This programme has potential to significantly accelerate manufacturing output, promote further diversification of our economy and enable faster growth of non-oil exports,” Emefiele enthused.
The PPP aims to stimulate productivity in agriculture, healthcare, manufacturing, logistics, services, trade-related infrastructure, and renewable energy.