How to apply for CBN’s N5 billion ‘100 for 100 PPP loan’

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. Once the apex bank can determine that the private company can have a substantial impact […]

Once the apex bank can determine that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”, the company would be selected. The CBN would screen and finance eligible private sector companies in 100 days, and roll over every 100 days.

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.

Read: How to apply and get loans from CBN’s Anchor Borrowers’ Programme

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.

Read: Why NIRSAL/CBN may not approve your COVID-19 loan

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.

Read: CBN promises manufacturers loans of not more than 9% rate

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.

Read: Companies declare massive profits on the back of CBN Intervention loans

Applicants shall notify the CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng)

Here is 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.

Comments 27

Mark nmaju udensi

November 12, 2021 · 6:37 am

That is one good step forward towards good development

Akinbobola

November 12, 2021 · 6:44 pm

Many are with 1st degree without those requirements. Yet they also need to be involved give us the way out or make another simple provision from the national level

Wilson Thomas

November 13, 2021 · 8:17 am

Once again, the critical segment – the youths and SMEs, has been screened out.

Either our economic managers don’t understand the needs and challenges of this section of our economy or they do, but don’t want to address it.

Solutions that works for me should be for my problems and not to create imaginary solutions for some imagined problems and expect me to adjust my problems to suit some imagined solutions. I don’t know how that works.

Our CBN should realize that challenges facing these companies has nothing to do with working capital, in most cases.

Lack of infrastructure and ease of doing business is the key problem.

It costs about $4000/100kgs to export goods from most African countries.. here it costs about $35,000/100kgs.

Lack of adequate public power supply, Forex .. multiple taxation, bad road, security etc .. are more destructive challenges to businesses than working capital.

With this difficult long list of requirements, on a few companies that probably doesn’t need the money will qualify.

The greater danger of the selected companies sinking into deeper debt is highly possible due to the real challenges I mentioned.

Christian Okoye

November 13, 2021 · 5:43 pm

Can cooperative societies apply for this loan

Kingsley Ishmael

November 13, 2021 · 8:54 pm

Then you ‘re not ready to empower local ideas and productivitie ups with this long list of requirements. I need at least 5m naira loan to start my paints production. 08070688908 please call now I have waited for too long.

Kingsley Ishmael

November 13, 2021 · 9:00 pm