The Central Bank of Nigeria (CBN) has concluded plans to launch targeted interventions that will enhance the production base of 100 companies every 100 days.
The CBN is taking this step as a result of the low manufacturing base of the Nigerian economy with a high dependency on imported goods.
The new intervention, tagged “The 100 for 100 PPP – Policy on Production and Productivity”, will begin November 1, 2021.
The CBN Governor, Mr Godwin Emefiele, disclosed this Monday in Abuja at the launch of the CBN digital currency, the eNaira.
He explained that the move is expedient because of the urgency to end the naira free value fall over the years.
This is even as he assured that the current external reserves position of the country of about $40 billion is one of the highest in Africa which puts Nigeria on a comfortable place.
“Today, in addition to all policies and actions of the CBN to support the economy, especially through the trying times of COVID-19, the apex bank is announcing a new financial instrument titled “The 100 for 100 PPP – Policy on Production and Productivity”, which will be anchored in our Development Finance Department under my direct supervision.”
Mr. Emefiele explained that; “under this policy the CBN will advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days, beginning from 01 November 2021, and rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm.”
According to him, “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.”
He said “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.
“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 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.”
He further noted that as custodians of the national reserves, there is no cause for alarm.