How To Access CBN N5Billion 100 For 100 PPP Loan-Application Form
Nigeria’s apex bank, CBN is pleased to enlighten the populace on how to access the Federal Government 100 for 100 Policy on Production and Productivity (PPP)
The Central Bank of Nigeria (CBN ) launched the 100 for 100 Policy on Production and Productivity (PPP) targeted at private companies who have a project to fund and can apply for as much as N5 billion under the scheme.
Once the apex bank can determine that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”, the company would be selected. The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.
This initiative is designed to create the flow of finance and investments to enterprises with the 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 improving 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 the potential to transform and catalyze the productive base of the economy.
The specific objectives include:
i. catalyze import substitution of targeted commodities.
ii. increase local production and productivity.
iii. increase non-oil exports.
iv. improve foreign exchange earning capacity of the economy.
Key Performance Indicators;
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 utilization.
iii. % increase in export volume and value.
iv. % decrease in import volume and value of industrial raw materials.
v. Increase in the number of jobs created.
Focal activities shall be existing businesses and projects (brownfield) with the potential to transform and jumpstart the productive base of the economy such as:
ii. Agriculture and agro-processing.
iii. Extractive Industries.
iv. Petrochemicals and Renewable Energy.
v. Healthcare and Pharmaceuticals.
vi. Logistics Services and Trade-Related Infrastructure.
vii. Any other activities as may be prescribed.
Long-term loan for the acquisition of plant and machinery and Working Capital
The 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 underlying collateral.
Moratorium: Term loans shall have two (2) years moratorium.
The 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 amortized 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.
How To Apply
Interested private-sector companies shall submit their applications via their PFIs with requisite documentation which shall include, amongst others:
Detailed STATUS REPORT ON PROJECT’S capacity utilization, production output, productivity/efficiency level, employment level, export capacity, and value creation.
PROJECTED POST-FINANCING ECONOMIC BENEFIT of the project – increase in capacity utilization, production output, productivity/efficiency level, employment level, export capacity, and value creation after financing.
The LENDING BANK TO RECEIVE APPLICATIONS and carry out DUE DILIGENCE based on BUSINESS and CREDIT considerations.
Upon approval by the appropriate PFI’s CREDIT COMMITTEE, the lending bank shall forward applications of their eligible private sector companies to the CBN.
An APPLICATION submitted by the company’s promoters through a PFI seeking to be financed under the initiative.
Certified true copies of COMPANY REGISTRATION evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC).
THREE (3) YEARS AUDITED FINANCIALS including the latest management account of the company.
At least TWO (2) CREDIT REPORTS of the company and the directors.
Business plan of the underlying project for which the facility is to be applied.
Applicant to notify CBN of a submitted application using this portal for the purpose of tracking and monitoring application status;
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.
The CBN shall screen and finance eligible private sector companies in 100 days, and rollover every 100 days.
Central Bank of Nigeria shall conduct an internal review of the applications received to ensure compliance with the stipulated requirements for participation under the initiative
Submit an executive summary of your application via this portal. Central Bank of Nigeria shall conduct an internal review of the applications received to ensure compliance with the stipulated requirements for participation under the initiative.
The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies.
How To Apply