Business - Business & Economy - News - October 26, 2021

CBN rolls out fresh financial instrument to support production, productivity

By Bassey Udo

The Central Bank of Nigeria has announced the launching of a new financial instrument to support production and productivity.

The CBN governor, Godwin Emefiele, announced the new instrument in Abuja during the formal roll out of Nigeria’s digital currency, eNaira.

He said the new instrument would be in addition to all policies and actions of the CBN to support the economy, especially through the trying times of COVID-19. 

Emefiele said the new financial instrument, titled “The 100 for 100 PPP – would support the policy to promote production and productivity in the country’s economy.

He said the new policy would be anchored in the Development Finance Department of the CBN under the direct supervision of the CBN governor.

“Under the new policy, the CBN will advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days, beginning from November 1, 2021, and rolling over every 100 days with new sets of 100 companies, whose names would be published in national dailies for Nigerians to verify and confirm, ” he announced. 

Working through banks, he said the financial instrument would be available to their customers to boost production and productivity, and to immediately transform and jumpstart the productive base of the economy.

After these 100 projects by companies in the first 100 days from November 1, he said the CBN will take the next 100 companies/projects for another 100 days beginning February 1, 2022, and then another 100 companies for another 100 days beginning from May 1, 2022.

“The purpose of this instrument is to take further steps to reverse our over-reliance on imports.

“We believe that if we target and support the right companies and projects, we will see a significant, measurable and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in the FX-generating capacity of the economy.

“This, in my view, is the best and most sustainable way to address the Naira’s value – whether in hard currency or digital eNaira – through production, production and more production.

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