FG introduces New CBN N5 Billion 100 for 100 Intervantion Loan; Apply Now The CBN 100 for 100 Policy on Production and Productivity (PPP) loan is designed to support private companies in funding their projects. Under this scheme, private companies can apply for funding of up to N5 billion.
CBN will evaluate the applications and assess the impact of the private companies on the Nigerian economy using Performance Indicators (KPIs). Once qualified, the companies will be selected for financing.
The apex bank will screen and provide financing to eligible private companies within 100 days, with subsequent roll-overs every 100 days.
The CBN 100 for 100 PPP loan scheme aims to facilitate a steady flow of finance and investments to enterprises that have the potential to enhance economic growth, promote diversification, accelerate structural transformation, and improve productivity.
The loan encompasses long-term funding for the acquisition of plant and machinery, as well as working capital.
The maximum loan amount per obligor is N5 billion. Any amount exceeding N5 billion requires special approval from CBN Management.
The interest rate for the intervention is capped at 5.0% p.a. (inclusive) until February 28, 2022. Afterward, the interest rate will revert to 9% p.a. (inclusive) starting from March 1, 2022.
Loan Tenor and Moratorium
Term loans can have a maximum tenor of ten (10) years, depending on the project’s complexity, not exceeding December 31, 2031. The tenor for each project will be determined based on cash flow and the lifespan of the collateral.
Moratorium: Term loans come with a two (2)-year moratorium period. Working capital facilities have a tenor of one (1) year, with a provision for a maximum of three (3) years of rollover.
The participating financial institution (PFI) assumes the credit risk. Refinancing of existing facilities is allowed under the initiative, subject to Management’s approval.
How the CBN 100 for 100 PPP Loan Works
CBN will select 100 private companies with projects that can significantly increase domestic production, reduce imports, boost non-oil exports, and stimulate economic growth.
The selection process will be conducted quarterly (every 100 days), and a new set of qualified companies will be chosen for financing.
The initiative is funded through the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other designated funding window by the central bank of Nigeria.
The maximum loan amount per obligor is N5 billion, and any amount exceeding this requires special approval from CBN Management.
The interest on the funds will be amortized and transferred quarterly, along with principal repayments, to the Central Bank of Nigeria. The interest rate for the intervention will not exceed 5.0% p.a. (inclusive) until February 28, 2022. From March 1, 2022, the interest rate on the facility will revert to 9% p.a. (inclusive).
The Central Bank will monitor the progress of the companies and establish a comprehensive, regular monitoring system based on specific benchmarks and key performance indicators (KPIs) for the selected companies.
CBN N5 Billion ‘100 for 100 PPP Loan’ Application Portal
N N5 Billion ‘100 for 100 PPP Loan’ Application Portal
To apply for this opportunity, interested parties should visit the CBN 100 for 100 PPP application portal at https://100for100ppp.ng/submit-application.
For more information, visit https://100for100ppp.ng.