By Eyo Nsima

The Central Bank of Nigeria, CBN, has issued guidelines for the execution of 100 for 100 policy on production and productivity, PPP.

In the guidelines obtained by The Daily, www.thedaily-ng.com, Philip Yila Yusuf Director, Development Finance Department, CBN, stated: “In an effort to stimulate the flow of credit to the real sector of the economy in order to reverse the nation’s over-reliance on import, the Central Bank of Nigeria hereby issues the Guidelines for the implementation of the 100 for 100 Policy for Production and Productivity (100 for 100 PPP) for eligible private companies with potential to immediately transform and catalyse the productive base of the economy.

“Enquiries on the Guidelines may be referred to the Director, Development Finance Department, Central Bank of Nigeria, Abuja, Philip Yila Yusuf Director, and Development Finance Department.”

The guidelines also, stated: “In furtherance of its core mandates of delivering price and financial system stability and promoting sustainable economic development, the 100 for 100 Policy on Production and Productivity (PPP) is introduced by the Central Bank of Nigeria (CBN) to stimulate investments in Nigeria’s manufacturing sector with the core objective of boosting production and productivity, necessary to transform and catalyse the productive base of the economy.

“ The overarching goal of the initiative is to reverse the nation’s over-reliance on import. The initiative, 100 for 100 PPP, is a financial instrument designed to create the flow of finance and investments to enterprises with the potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.

“Quarterly, starting from 1 st November 2021, the initiative shall select 100 private sector companies with projects that have potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.

“The initiative, which shall be bank-led, will be rolled over every 100 days (that is, quarterly) with a new set of companies selected for financing under the initiative. The initiative shall be implemented in collaboration with relevant stakeholders with a focus on micro and macroeconomic impacts, in terms of contribution to GDP and exports, sustainable jobs created, local content development, production output, and capacity utilisation and integration into the global value chain. This guideline outlines the operational modalities for the instrument.”