100 for 100 Policy: As more companies jostle for CBN’s lifeline

The Central Bank of Nigeria (CBN) penultimate week released the list of 28 companies that took home N23.2 billion from the first cycle of the 100 for 100 Policy on Production and Productivity (PPP).

The CBN Governor, Mr Godwin Emefiele, while speaking at the launch of the 100 for 100 Policy for Production and Productivity (PPP), in Abuja on the 31st of January, said the ultimate goal of the policy is to reverse the nation’s reliance on imports by creating an ecosystem that targets and supports the right companies and projects.

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Emefiele said 28 enterprises were identified qualified and selected for finance, with projects totalling N23.2bn. He went on to say that the scheme would provide low-cost finance to both new and current productive ventures.

Emefiele disclosed at the launch that specifically, “for the first cycle of the initiative,  243 applications valued at N321.06 bn, spread over key sectors such as agriculture, energy, healthcare, manufacturing, and services sectors were submitted on the portal.

“After much engagement, 79 applications were received from banks, valued at N121.87 bn, for projects in six (6) sectors, namely agriculture, energy, healthcare, manufacturing, mining, and services sectors.

“The requests were carefully screened and scrutinized against a set-out selection criterion, which is categorized into production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth.

He said following the due screening of the applications received,  28 companies with projects that have clearly articulated proposals were selected for funding.

“These projects, valued at N23.20 billion, comprise 14 in the manufacturing sector, 12 in the agricultural sector, and 2 in the healthcare sector.

“When fully operational, these projects are expected to create over 20,000 direct and indirect jobs across multiple sectors of the economy, as well as generate close to US$125.80 million in foreign exchange earnings.

“It is important to note that five (5) of the selected projects are greenfield projects seeking to exploit the huge opportunities in key sectors of our economy.”

List of recipient companies of CBN’s 100 for 100 loan

100 for 100 approved applications as of January 28, 2022, are: UCIKO Nig LTD, Springfield Agro Limited, Jeokol Farm Limited, Diamond Super Sacks LTD, Mecure Healthcare, Juddy Bolema Industries Limited, Vital Products PLC, Lamb Ranches Limited, Harvest Feed & Agro Processing LTD and Transnational Green Pastures LTD.

Others include: Wewood Limited, Lanre Shittu Motors, Pally Agro Products LTD, RotoPrint Limited, Premier Seed Nigeria LTD, Jubaili Agrotec, Food Solutions Livestock Limited, Summit Health Care, Aikson Global ASS LTD, Metal World Recycling Ltd, Reliance Chemical Products Limited and Sonhart Investment Ltd.

Taraba Farms Limited, Crutech Consultancy Services Limited, Lofeta Global Merchants Company Limited, Sarsoli Industrial Company Limited, J.O.F. Nigeria Limited and Salient Industries LTD made up the list.

The CBN Governor presented symbolic cheques to the seven (7) participating financial institutions whose customers have been selected as pioneer beneficiaries under the PPP’s first cycle.

First City Monument Bank (FCMB) received a total of N1.1bn, Fidelity bank received N5.7bn and Keystone bank, N998million. 

Stanbic IBTC N3.3bn, Union Bank, N2.3bn, Wema bank N450million and Zenith bank, N9.2bn.

What you should know

Speaking on the application that was not successful, Emefiele said: “For the ones that have not qualified, we will go back and review the applications and deal with the issues to enable them to qualify.”

He also disclosed that the Apex bank will engage with commercial banks on the non-oil stimulation facilities in the coming days because there is a need to look into export stimulation in Nigeria.

“We have to make sure that all the transactions are properly recorded to boost export earnings in the country,” He added.

There are no limitations about the sectors. It only just happens that they brought just a few of these sectors.

The governor further hinted that the selection of subsequent beneficiaries will be rolled over every 100 days with new sets of 100 companies and details of these companies will be published in the major national dailies.

Emefiele said for those seeking to invest in new greenfield or existing brownfield projects, the Bank will continue to provide all the needed support, both in Naira and dollars specifically for the importation of plants and equipment to actualize these investments.

He said: “It is pertinent to point out that the foreign exchange support will be solely for the importation of spares, plants and equipment needed to increase production capacities of these companies.

“Let me emphasize that our mission through this initiative is to ensure that priority is accorded to companies who display verifiable progress in our imports substitution and job creation drive. Consequently, we would soon unveil a new FX bidding regime that is market-driven and supports companies that accord utmost priority for our local production and job creation drive.”

Testimonials from the first beneficiaries

The Emir if Muri and the proprietor of Taraba farms ltd, Alhaji Abbas Jidda Tafida said: “With the direction of the CBN, I believe that the policy will bring the job we need to occupy the youths and take them away from societal vices.

“Nigeria needs approximately a billion litres of milk a week but unfortunately, all are coming from imports. For the meat, we are carelessly running the beef market, thus, the price of beef has gone out of the reach of most the people who are supposed to be consuming.

“As a result, they are hungry and unproductive. So, if we get the youth into beef production, they will also be the consumers of the beef. The economy is a circle. Once the circle breaks somewhere, then everything collapses.

“I will add something, all this I am talking of would have been a dream without the creativity and brilliance of the CBN’s governor because he came up with a lot of ideas that simply fit that logic and when two intelligent people are discussing, the answer it is very easy.”

Another beneficiary, the Chief Operating Officer of Harvest field and Agro-processing ltd, Adedolapo Adeyemi said: “With the new finance, we will be able to increase production by 60 per cent and employ additional 300 people.

“This is a breakthrough for us and we are really happy and we hope to take the Agriculture sector forward.”

Other stakeholders speak

The Minister for Labour and Employment, Dr Chris Ngige in his remarks said: “Unless the country gets to be productive, all we are doing comes to nothing.

“All the CBN innovative finance has paid a lot of attention to agriculture because it is a low hanging fruit and it is in agriculture that you have real production.

“These initiatives align with the federal government drive to lift 100 million Nigerians out of poverty. So we have no choice but to stimulate productivity programme in the country.”

He called for sustained collaboration between the Monetary and the fiscal authorities noting that the economy will suffer the most if they fail to synergize to move the economy forward.

The Chairman of the Body of banks CEOs and Chief Executive Officer of Access Bank, Herbert Wigwe in his remarks said: “We take our responsibility to economic development very seriously because Nigeria has for its benefit, a very young population.

“COVID-19 has proved to us the need to come together to support production, increase and reduce import.”

He said the CEOs will do all they can to support the policy.