CBN targets Nigeria’s import dependency with new policy instrument
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To support 100 companies every 100 days
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Tagged Policy for Production and Productivity
The Central Bank of Nigeria (CBN) is continuing with its policy of trying to rein in the country’s dependency on imports with the introduction of a new programme it has tagged “The 100 for 100 PPP – Policy on Production and Productivity.” It will provide support for selected private sector companies across Nigeria every 100 days.
Godwin Emefiele, governor of the apex bank made the disclosure at the launch of the Central Bank Digital Currency (CBDC), the eNaira, held at the State House, Abuja.
Emefiele explained that the policy will be facilitated by the CBN’s development finance department under his direct supervision, and that it will advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, starting from November 1, 2021, and rolling over every 100 days with a new set of 100 companies, whose names will be published in national dailies for Nigerians to verify and confirm.
“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,” Emefiele said.
The CBN governor also disclosed that the apex bank would, in conjunction with commercial banks, make the financial instrument available to customers in critical areas to boost production and productivity, with a view to immediately transforming and ‘jumpstarting’ the productive base of the economy.
According to Emefiele, the new development was 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, adding that the purpose of this instrument is to take further steps to reverse the country’s over reliance on imports.
He asserted that by targeting and supporting the right companies and projects, Nigeria 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.