Market News

The Central Bank of Nigeria (CBN) has launched a new policy to financially support 100 targeted private sector companies in 100 days.

Godwin Emefiele, CBN governor, said this on Monday in Abuja during the launching of the eNaira project.

The financial instrument titled “The 100 for 100 PPP – Policy on Production and Productivity,” Emefiele said the CBN would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning from 01 November 2021.

“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,” Emefiele said.

“Under this policy, the CBN will advertise, screen, scrutinise 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.”

Emefiele further stated that the apex bank would work with banks to deliver the financial instrument to customers to boost production and productivity.

“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,” he added.

“This, in my view, 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.”

The CBN governor assured Nigerians that there is no cause for alarm over foreign exchange reserves.

He said Nigeria’s FX reserves crossed $40 billion, describing it as one of the highest in Africa.

Emefiele said the bank must return to an employment-led growth anchored on productivity and rewarding producers of local goods, services, innovation and new technologies.

“If you consume cheap imports and export our jobs, we will make you pay dearly; but if you produce locally – with little or no foreign inputs beyond machinery, we will support you, and the markets will reward you abundantly,” he added.