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.
The initiative, 100 for 100 PPP, is a financial instrument designed to create the flow of finance and investments to enterprises with the potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.
According to information about the scheme, interest rate under the PPP intervention shall not be 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.
Table of Content
Qualified Companies Eligible to Apply
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
How to Apply
Interested private-sector enterprises must submit applications to their PFIs together with the necessary documentation, which includes, among other things,
Financial statements.Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)Three (3) years of audited financials, including the most recent management account of the companyEvidence of the company’s, promoters’, and directors’ creditworthinessAt least two (2) credit reports of the company and the directors;Business plan of the underlying project for which the facility is to be appliedDetailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creationIncreased capacity utilisation, production output, productivity/efficiency level, employment level, export capability, and value creation after funding should be projected to represent the project’s post-financing economic benefits.
Applicants shall notify the CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng)
Processes Your Applications will take before Approval
Once the lending bank receives your applications, due diligence on them based on business and credit would be conducted.
After which, the lending bank would forward the applications of their eligible private sector companies to the CBN for approval by the appropriate PFI’s Credit Committee.
The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.
The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies and 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 post How To Apply For CBN ₦5bn In ‘100 For 100 PPP Loan’ appeared first on Wealth Creation.