The Central Bank of Nigeria CBN) has disclosed that it will soon introduce a new forex bidding regime.
The planned forex bidding regime will be market-driven and designed to support companies engaged in local production and job creation.
Governor of the CBN Godwin Emefiele disclosed in Abuja on Monday at the formal launch of the 100 for 100 Policy for Production and Productivity (PPP).
According Emefiele, “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.”
The CBN’s mission through the 100 for 100 PPP initiative he said “is to ensure that priority is accorded to companies who display verifiable progress in our imports substitution and job creation drive.”
For those seeking to invest in new greenfield or existing brownfield projects, Emefiele stated that the CBN “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 pointed 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.”
The 100 for 100 Policy for Production and Productivity (PPP) is one of CBN’s interventions designed to fast track productive activities in priority sectors.
Under this Programme, eligible applicants will be required to submit their applications to their banks, after which, a notification is submitted on a dedicated portal – https://100for100ppp.ng, which has been created to ensure transparency and allow applicants track the status of their applications.
Eligible companies in priority sectors will be screened and 100 companies will be selected to receive funding from the CBN every 100 days, beginning from 1st November 2021.
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.
Based on this criteria, the CBN governor disclosed that for this first cycle, 243 applications valued at N321.06 billion, 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 billion, for projects in six (6) sectors, namely agriculture, energy, healthcare, manufacturing, mining, and services sectors,” he said.
After screening the requests against a set-out selection criteria categorised into: production efficiency and scalability; local content capacity; job creation and human capital development; operating sector relevance; and potential contribution to economic growth, 28 companies with projects that have clearly articulated proposals were selected for funding.
These projects the CBN governor said are, valued at N23.20 billion, comprising 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,” Emefiele revealed.
Five of the selected projects are greenfield projects that want to exploit the huge opportunities in key sectors of the economy.
Speaking at the occasion, Minister for Labour and Productivity Dr. Chris Ngige said the 100 for 100 PPP initiative aligns with government’s desire to lift 100 million Nigerians out of poverty as a result “we have no choice but to embrace productivity stimulating measures.”
Ngige lamented that the proliferation of ethnic militants like the Avengers, IPOB, Boko Haram and others was as a result of youth unemployment. According to the Labour Minister, ” we have not adequately diversified, we have to change the narrative, while the fiscal and monetary authorities should harmonize their efforts.
Managing Director of Access Bank Mr. Herbert Wigwe speaking for the banks assured that all participating banks are ready to support the initiative with all the resources at their disposal.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
