CBN sets up financial instrument “The100 for 100 ppp

CBN governor Godwin Emefiele

The Central Bank of Nigeria (CBN) has introduced a new financial instrument known as ‘The 100 for 100 PPP’ also known as Policy on Production and Productivity to boost local production and productivity in various sectors of the economy.

CBN Governor, Mr. Godwin Emefiele, disclosed this at the launch of the Central Bank Digital Currency (CBDC), known as the eNaira at the State House, Abuja.

The initiative by the apex bank is expected to provide support for selected private sector companies in the country as well as part of steps to reverse the country’s over-reliance on imports.

Emefiele said the new policy would also be anchored in the CBN Development Finance Department under his direct supervision.

The CBN governor pointed out that the initiative was 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. He said, “Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity, and to immediately transform and jumpstart the productive base of the economy.

“After these 100 projects by companies in the first hundred days from November 1, we 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. 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- exports, and improvements in the FX-generating capacity of the economy. The CBN in the wake of the outbreak of the coronavirus pandemic and its devastating impact on businesses and the economy in general introduced various intervention programmes to help cushion its effect.