By Babajide Komolafe, LAGOS
THE Central Bank of Nigeria, CBN, yesterday, unveiled the criteria for selecting companies that will participate in its 100 for 100 Policy on Production and Productivity, PPP, aimed at providing funding and foreign exchange to new projects capable of significant economic impact in terms of job creation, foreign exchange earnings and ease of doing business.
The criteria were contained in a statement by CBN’s Director, Development Finance Department, titled: ‘Selection criteria for private sector companies’ participation under the 100 for 100 Policy on Production and Productivity, PPP’.
It stated that: “The projects for consideration shall be new projects in existing companies requiring new machinery and other support and must have the greatest potential to achieve significant scale in their in-country production and for domestic consumption and exports.”
Among other things, the selection criteria include: Local Content, Job Creation and Human Capital Development, Contribution to Economic Growth, and Production Efficiency and Scalability.
According to the CBN, 80 per cent of jobs created by such projects must be for Nigerians while 50 per cent of raw materials for the project must be sourced locally.
The CBN also stated that the projects must have significant foreign exchange earnings potential as well as potential for positive impact on ease of doing business in the country.
The CBN explained that broad objective of this new CBN’s 100 for 100 PPP financial instrument is to reverse the nation’s over-reliance in imports, by creating a platform that targets and supports the right companies and projects with potential to immediately transform and jumpstart the productive base of the economy.
The statement reads in part: “The selection criteria for participation under the CBN’s 100 for 100 PPP shall be premised on immediate contribution to economic growth, jobs creation, and social impact. In selecting the companies and projects therefore, the following evidence -based, transparent and measurable criteria shall be deployed.
“The CBN Intervention under the 100 for 100 PPP Instrument shall provide: Naira Intervention Funding under existing CBN Intervention Processes; Complete FX funding for new machinery.
“This instrument is for only new projects; will not cover any refinance of existing facilities and will be subject to independent evaluation by international Audit firms.
“All intervention under this project will be made public and published in national dailies.
“The CBN will work with fiscal authorities to facilitate power sector, port and export reforms as well as ease of doing business to improve competitiveness in Nigeria to complement and propel this initiative.”