Policy on Production
Through 100 projects
For every 100 Days
This initiative is designed to create the flow of finance and
investments to enterprises
with potential to kickstart a sustainable economic growth trajectory, accelerate structural
transformation, promote diversification, and improve productivity. It is a support to
private sector companies with the aim of reducing certain imports, increasing non-oil exports and to improve the FX-generating capacity of the economy.
Objectives of the Initiative
The broad objective of the initiative is to reverse
the nation’s over-reliance on imports, by creating an
ecosystem that targets and supports projects with potential to transform
and catalyze the productive base of the economy. The specific objectives
i. catalyse import substitution of targeted commodities;
ii. increase local production and productivity;
iii. increase non-oil exports; and
iv. improve foreign exchange earning capacity of the economy
Key Performance Indicators
A comprehensive, regular monitoring of specific benchmarks and
key performance indicators (KPIs) under the initiative
shall be undertaken
regularly. The KPIs (specific and relevant) shall include:
i. % increase in production output of financed companies;
ii. % increase in capacity utilisation;
iii. % increase in export volume and value;
iv. % decrease in import volume and value of industrial raw materials;
v. Increase in number of jobs created.
Focal activities shall be existing businesses and
projects (brownfield) with potential to transform and
jumpstart the productive base of the economy such as:
ii. Agriculture and agro-processing
iii. Extractive Industries
iv. Petro-Chemicals and Renewable Energy
v. Healthcare and Pharmaceuticals
vi. Logistics Services and Trade-Related Infrastructure
vii. Any other activities as may be prescribed
Financial Instrument Features
Long-term loan for acquisition of plant and machinery and Working Capital
Loan amount shall be a maximum of N5 billion per obligor. Any amount above N5 billion shall require the special approval of Management.
The rate of Interest
Interest Rate under the intervention shall be at not more than 5.0% p.a. (all inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% p.a. (all inclusive) effective from 1st March 2022.
Loan Tenor and Moratorium
- Term loans shall have a maximum tenor of ten (10) years depending on the complexity of the project, not exceeding 31st December 2031. Each project tenor shall be determined in relation to its cash flow and life span of the underlyingcollateral.
- Moratorium: Term loans shall have two (2) years moratorium.
- Working capital facility shall have a tenor of one (1) year with provision for roll over for a maximum of three (3) years.
- The participating financial institution (PFI) shall bear the credit risk.
- Refinancing of existing facilities allowed under the initiative, subject to Management’s approval.
The collateral acceptable under the intervention facility shall be as may be acceptable by the PFI under the RSSF-DCRR.
Repayment of Loan
Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN.
Participating Financial Institutions (PFIs)
Only CRR contributing Deposit Money Banks (DMBs) shall be eligible to participate under the initiative.
PRODUCTION EFFICIENCY & SCALABILITY
LOCAL CONTENT CAPACITY
HUMAN CAPITAL DEVELOPMENT
OPERATING SECTOR RELEVANT
CONTRIBUTION TO ECONOMIC GROWTH
|PARAMETRES||Capacity Utilisation and Scalability||Scale of locally sourced raw materials||Job Creation and Capacity Building||Operating sector
|Impact on key macroeconomic
▪ Financial performance (3yrs audited report)
▪ Business Viability
▪ Project Innovation
▪ Creditworthiness of Directors
▪ 50% of raw material input sourced locally
▪ >80% of jobs created should be for Nigerians
|▪ Job creation
▪ Detailed plan for training the workforce with requisite skills to enhance productivity
▪ Alignment with focal business activities
▪ Integration into the Global Export Value Chain
|▪ Contribution to GDP potential
▪ Share of domestic market
▪ Foreign exchange earning potential
▪ Export value potential