CBN has commenced the implementation of its 100-for- 100 Policy for Production and Productivity with the disbursement of N23.2bn
By Eugene Onyeji
The Governor of Nigeria’s apex bank, the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has commenced the implementation of its 100-for- 100 Policy for Production and Productivity with the disbursement of N23.2 billion to 28 companies as part of efforts to accelerate manufacturing output and promote further diversification of the economy.
Presenting the cheques on Monday to the beneficiaries, which comprised 14 companies in the manufacturing sector, 12 in the agricultural sector, and two in the healthcare sector, at the Bank’s head office, Mr. Emefiele disclosed that the 100 for 100 PPP was designed by the CBN to stimulate investments in Nigeria’s priority sectors with the core objective of boosting production and productivity. He added that these will aid Nigeria’s efforts to stimulate greater growth of the economy and create employment opportunities.
“It is important to note that 5 of the projects are greenfield projects trying to explore the huge opportunities in key sectors of our economy,” he said.
According to him, the formal launch of the 100 for 100 policy for the Scheme’s developmental component underscored the critical roles in building new blocks for economic growth, improving production expansion, reducing reliance on imports and fostering growth on non-oil export, particularly as the country’s national growth was highly dependent on strong and competitive businesses.
He explained that “under the initiative, every hundred 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 a foreign exchange to procure plants and machinery.”
While noting that the programme had the potential to significantly accelerate manufacturing output, promote further diversification of the economy and enable faster growth of Nigeria’s non-oil exports, Emefiele expressed confidence that the PPP will help to reduce the country’s over-reliance on imports, and stimulate productivity in agriculture, healthcare, manufacturing, extractive industries, logistics services, trade-related infrastructure, and renewable energy.
Specifically, he said the scheme aimed at creating more than 20,000 jobs and expected to generate over US$125.80 million in foreign exchange earnings.
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Speaking further, he explained that only 79 out of an initial 243 applications valued at N321.06 billion spread across key sectors of the economy, were submitted by the banks, out of which only 28 companies with projects that had clearly articulated proposals were eventually selected for funding valued at N23.20 billion.
The highpoint of the ceremony was the presentation of symbolic cheques to the beneficiaries, through seven Participating Financial Institutions (PFIs) – FCMB, Fidelity, Keystone, Stanbic IBTC, Union Bank, Wema Bank and Zenith Bank.
Minister of labour and employment, Dr Chris Ngige, who was also at the event that was held at the headquarters of the CBN, said the 100-for-100 PPP was designed to ensure that Nigeria moves from a consumption to a production nation.
“Our bulging youth population must be used to the advantage of the country. We have seen Boko Haram, IPOB and Oduduwa People’s Congress. They are a challenge today because they are not fully engaged,” he stated.
Ngige said the nation’s economy had not been sustainably diversified to deal with the social delinquency problems troubling the country.
“We know that if we don’t have a central bank that is playing centre forward and even goalkeeping today, this country will die,” Ngige said.
Speaking on behalf of the Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, the Permanent Secretary, Ecological Fund Office, Dr, Habiba Lawal said the ingenious initiative was coming at a time the country was exploring means of economic diversification aimed at reversing its overdependence on importation as well as galvanizing local production of goods and services that would trigger employment generation, wealth creation and poverty eradication.
In their separate remarks, the President, Manufactures Association of Nigeria (MAN), Dr. Mansur Ahmed and the Managing Director, Access Bank Plc, Dr. Herbert Wigwe, who doubles as the Chairman, Body of Bank Chief Executive Officers (CEOS), commended the initiative and pledged their readiness to collaborate with the CBN to ensure its success.