The Governor of the Central Bank of Nigeria, Godwin Emefiele, announced that it has disbursed N114.17 billion. Since its launch, the disbursement is under its 100-for-100 Policy on Production and Productivity. Emefiele made this announcement in a communiqué following the latest Monetary Policy Committee meeting in Abuja.
According to Emefiele, the funds are to finance 71 healthcare, manufacturing, and agriculture projects. He added that the bank disbursed N20.78 billion to nine projects in healthcare, manufacturing, and services under the policy, bringing the cumulative disbursements to N114.17 billion.
The 100-for-100 Policy on Production and Productivity, launched in January 2022, targets 100 private sector companies. The companies are with projects to significantly boost domestic production and productivity, reduce imports, and increase non-oil exports, among other things. The CBN has set a maximum loan amount of N5bn per participant for the initiative.
The bank said the policy would be implemented with input from relevant stakeholders and focusing on micro- and macro-economic impacts. It aims to create sustainable jobs, develop local content, improve production output, increase capacity utilisation, and integrate Nigeria’s economy into global value chains.
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The CBN stated that the initiative would be reviewed every 100 days, and a new set of companies would be selected for financing under the policy. The bank’s management will approve any amount exceeding the maximum loan amount of N5bn per obligor.
The policy’s broad objective is to reduce Nigeria’s over-reliance on imports by creating an ecosystem that targets and supports suitable projects with the potential to transform and catalyse the economy’s productive base. The CBN aims to increase local production and productivity, catalyse import substitution of targeted commodities, boost non-oil exports. And also to improve the foreign exchange-earning capacity of the Nigerian economy through this initiative. Existing businesses and projects with the potential to immediately transform and catalyse the economy’s productive base. New projects may be considered under the industry, subject to CBN management’s approval, according to the guidelines.
