The 100 for 100 Policy on Production and Productivity project aims to increase the flow of money and investments to firms that have the ability to catalyze long-term economic growth, accelerate structural transformation, promote diversification, and boost productivity.
This program, which began on November 1, 2021, will pick 100 private sector enterprises with initiatives that have the potential to considerably increase local productivity and Nigeria’s ability to generate foreign exchange.
The Central Bank of Nigeria (CBN) so far has disbursed over N29 billion to companies that applied for the 100 for 100 Policy on Production and Productivity (PPP). The CBN said, “Under the 100 for 100 Policy on Production and Productivity (PPP), the Bank has disbursed the sum of N29.51 billion to 31 projects, comprising 16 in manufacturing, 13 in agriculture, and 2 in healthcare.”
The 100 for 100 PPP initiative will include long-term loans for equipment and machinery purchases, as well as working capital loans. The maximum amount of money that can be borrowed under this project is N5 billion. For applications worth more than N5 billion, CBN approval is required.
Term loans must be paid off by December 31, 2031, and have a maximum tenor of 10 years, depending on the project’s complexity. The working capital agreement will be for a year, with the option to extend it for up to three years. Term loans will be subject to a two-year moratorium.
Eligibility/Requirements
To qualify for this loan, your company should be in business to increase local production in order to boost import substitution of targeted commodities, increase non-oil exports, and to improve the economy’s foreign exchange earning potential.
Then, you would have to submit your application to commercial banks with requisite documentation, which includes:
- Evidence of company incorporation with Corporate Affairs Commission (CAC)
- Three years of audited financial reports.
- Evidence of the company’s creditworthiness, including its promoters and directors.
- A minimum of two credit reports of the company and directors.
- Business plan of the underlying project in need of financing.
- Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, value creation.
- Detailed report on the post-financing economic benefit of the project.
- Applicants shall notify CBN of submitted applications via a dedicated online portal https://100for100ppp.ng/ for tracking and monitoring application status.
