CBN 100 for 100 Funds – The Central Bank of Nigeria has introduced a 100 for 100 funds Nigerian who needs funds to kickstart their business or expand an existing business.
This initiative is designed to create the flow of finance and investments to enterprises
with potential to kickstart a sustainable economic growth trajectory, accelerate structural
transformation, promote diversification, and improve productivity. It is a support to
private sector companies with the aim of reducing certain imports, increasing non-oil exports
and to improve the FX-generating capacity of the economy.
CBN 100 for 100 Funds / Activities Covered
Focal activities shall be existing businesses and projects (brownfield) with potential to transform and jumpstart the productive base of the economy such as:
ii. Agriculture and agro-processing
iii. Extractive Industries
iv. Petro-Chemicals and Renewable Energy
v. Healthcare and Pharmaceuticals
vi. Logistics Services and Trade-Related Infrastructure
vii. Any other activities as may be prescribed.
CBN 100 for 100 Funds / Objectives Of The Initiative
The broad objective of the initiative is to reverse the nation’s over-reliance on imports, by creating an ecosystem that targets and supports projects with potential to transform and catalyze the productive base of the economy. The specific objectives include:
i. catalyse import substitution of targeted commodities;
ii. increase local production and productivity;
iii. increase non-oil exports; and
iv. improve foreign exchange earning capacity of the economy.
CBN 100 for 100 Funds / Key Performance Indicators
A comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) under the initiative shall be undertaken
regularly. The KPIs (specific and relevant) shall include:
i. % increase in production output of financed companies;
ii. % increase in capacity utilisation;
iii. % increase in export volume and value;
iv. % decrease in import volume and value of industrial raw materials;
v. Increase in number of jobs created.
CBN 100 for 100 Funds / Loan Type
Long-term loan for acquisition of plant and machinery and Working Capital
CBN 100 for 100 Funds / Loan Limit
Loan amount shall be a maximum of N5 billion per obligor. Any amount above N5 billion shall require the special approval of Management.
CBN 100 for 100 Funds / The Rate Of Interest
Interest Rate under the intervention shall be at not more than 5.0% p.a. (all inclusive) up to 28th February 2022, thereafter, interest on the facility shall revert to 9% p.a. (all inclusive) effective from 1st March 2022.
CBN 100 for 100 / Loan Tenor And Moratorium
- Term loans shall have a maximum tenor of ten (10) years depending on the complexity of the project, not exceeding 31st December 2031. Each project tenor shall be determined in relation to its cash flow and life span of the underlying collateral.
- Moratorium: Term loans shall have two (2) years moratorium.
- Working capital facility shall have a tenor of one (1) year with provision for roll over for a maximum of three (3) years.
- The participating financial institution (PFI) shall bear the credit risk.
- Refinancing of existing facilities allowed under the initiative, subject to Management’s approval.
CBN 100 for 100 Funds / Collateral Requirements
The collateral acceptable under the intervention facility shall be as may be acceptable by the PFI under the RSSF-DCRR.
CBN 100 for 100 / Repayment Of Loan
Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN.
Participating Financial Institutions (PFIs)
Only CRR contributing Deposit Money Banks (DMBs) shall be eligible to participate under the initiative.
How to Apply for CBN 100 for 100
Interested persons should visits the application portal and apply. Such should click the link and apply appropriately.