CBN N5 billion ‘100 For 100 PPP Loan’ – How To Apply

The Central Bank of Nigeria (CBN ) launched the 100 for 100 PPP loan a 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 apex bank disclosed this in its guidelines for the implementation of the policy, recently issued by Yila Yusuf, CBN’s director, development finance.

Under the new policy, Godwin Emefiele, CBN governor, had said the apex bank would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning November 1, 2021.

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The  initiative shall be funded from the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.

The loan amount shall be a maximum of N5 billion per obligor and any amount above N5 billion shall require the special approval of CBN’s Management.

Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. The interest rate under the 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.

How it works

The Central Bank of Nigeria is prepared to select 100 private sector companies with projects that have the potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.

The initiative, which would be bank-led, will be rolled over every 100 days (that is, quarterly) with a new set of companies selected for financing under the initiative.

The  initiative shall be funded from the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.

The loan amount shall be a maximum of N5 billion per obligor and any amount above N5 billion shall require the special approval of CBN’s Management.

Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. The interest rate under the 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.

CBN would monitor the progress of the company.

The Apex bank would set up comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) for selected companies including:

• Rate of Growth in production output
• Increase in capacity utilization
• Increase in export volume
• Increase in export value
• Decrease in industrial raw material import volume
• Decrease in industrial raw material import value
• Increase in the number of jobs generated

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 company
• Evidence of the company’s, promoters’, and directors’ creditworthiness
• 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
• Detailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creation
• Increased 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)

The process your application would 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.