In its bid to scale up local Production and preserve the foreign reserve of the nation, the Central Bank of Nigeria (CBN) has said it will support 300 private companies in its new financial instruction.
The Governor of Central Bank of Nigeria, Godwin Emefiele made the disclosure while commending president Muhammadu Buhari during the launch of the Nigeria’s Central Bank Digital Currency( The eNaira)
“Under your leadership, Mr. President, we must return to massive homemade production; we must get our people working again. We must create the economic environment for massive domestic production and significant non-oil exports.
“As custodians of your national reserves, let me first assure you that there is no cause for alarm. Our FX reserves are strong and indeed getting stronger by the day, crossing the 40 billion USD mark, and is one of the highest in Africa – and growing.
“But we cannot fritter our reserves away on cheap imports and currency speculators. We must return to an employment-led growth anchored on productivity and rewarding producers of local goods, services, innovation and new technologies.
Emefiele further said the new financial support will be Targeted at 300 private companies in the next 300 days beginning from November 1, 2021 to July 31, 2022.
“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.
“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”, Emefiele said.
He warned those with taste for imported goods at the detriment of locally produced foods to steer clear of the hard earned reserves of the nation while also pledging to support local manufacturers.
He said, “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 said the financial instrument will be available to banks for onward disbursement to their customers in critical areas to boost the production and productivity, immediately transform and jumpstart the productive base of the economy.
“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”, he said.
The Apex Bank Governor said the financial support is aimed at addressing the continuous dig in the value of Naira, being it in hard currency or digital eNaira
