The Central Bank of Nigeria (CBN) has revealed that private businesses operating in the country can access up to N5 billion under its recently launched Policy on Production and Productivity (PPP) Initiative.
The disclosure is contained in a recent circular issued by the apex banking authority, acknowledged by the director of its development finance department, Philip Yila Yusuf and seen by naijabusiness.com.ng.
According to the recent notice, the 100 for 100 Policy on Production and Productivity (PPP) initiative shall be funded from the CBN’s Real Sector Support Facility – Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.
Qualified private businesses domiciled in the country can access either long-term loan for acquisition of plant and machinery or working capital. The long term loans have a maximum tenor of ten (10) years depending on the complexity of the project, not exceeding 31st of December, 2031. On the other hand, working capital facility shall have a tenor of one (1) year with provision for roll over for a maximum of three (3) years.
The maximum amount each obligor is entitled to in each window is N5 billion. The apex bank added that any amount above N5 billion shall require the special approval of CBN’s management.
Interest rate under the intervention shall be at not more than 5.0% per annum (all inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% per annum (all inclusive) effective from 1st March 2022.
How to participate:
Private sector companies interested in the initiative are advised to submit the following;
a. Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC);
b. Three (3) years audited financials including the latest management account of company;
c. Evidence creditworthiness of the company, its promoters and directors;
d. At least two (2) credit reports of the company and the directors;
e. Business plan of the underlying project for which the facility is to be applied;
f. Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, export capacity and value creation; and
g. Projected post-financing economic benefit of project – increase in capacity utilization, production output, productivity/efficiency level, employment level, export capacity and value creation after financing.
In addition, prospective private sector companies are urged to take note the following:
ii. Applicants shall notify CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng) for tracking and monitoring status of applications;
iii. The lending bank shall receive applications and carry out due diligence on applications based on business and credit considerations;
iv. Upon approval by the appropriate PFI’s Credit Committee, lending bank shall forward applications of their eligible private sector companies to the CBN;
v. The CBN shall screen and finance eligible private sector companies in 100 days, and rolling over every 100 days;
vi. Central Bank of Nigeria shall conduct internal review of the applications received to ensure compliance with the stipulated requirements for participation under the initiative
vii. The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies;
viii. The successful beneficiaries would be published in National Dailies for Nigerians to verify and confirm with details of facility granted, operating sector, manufacturing activities financed, and PFI.