CBN releases criteria for selection of companies in 100 for 100 PPP

The Central Bank of Nigeria (CBN) has announced criteria for the selection of private sector companies’ participation under the 100 for 100 Policy on Production and Productivity (PPP).

According to the apex bank, the selection for participation under the CBN’s PPP shall be based on the immediate contribution to the economic growth, jobs creation and social impact.

The CBN noted that in selecting the companies and projects therefore, key areas such as production efficiency, scalability, historical financial performance (three years audited report of the company), viability of the business, credit-worthiness of directors, contribution to GDP potential, share of domestic market, foreign exchange earning potential, ease of exports and other criteria shall be deployed.

The objective of the new CBN’s 100 for 100 financial instrument is to reverse the country’s over-reliance on imports, by creating a platform that targets and supports the right companies and projects with potential to immediately transform and jumpstart the productive base of the economy.

The CBN further stated that the intervention under the 100 for 100 PPP instrument shall provide Naira Intervention funding under existing CBN intervention processes; complete FX funding for new machinery (this instrument is for only new projects, will not cover any refinance of existing facilities and will be subject to independent evaluation by international audit firms).

CBN also said that it will work with fiscal authorities to facilitate power sector, port and export reforms as well as ease of doing business to improve competitiveness in Nigeria so as to complement and propel the initiative.