How To Apply For CBN’s 5 Billion 100 for 100 PPP Loan For Business People 2021/2022

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 How To Apply For CBN’s 5 Billion 100 for 100 PPP Loan For Business People 2021/2022 

CBN loan application portal

How it works

The Central Bank of Nigeria is prepared to select 100 private sector companies with projects that have the potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.
CBN 100 for 100 PPP Loan

The Central Bank of Nigeria (CBN ) launched the 100 for 100 Policy on Production and Productivity (PPP) targeted at private companies who have a project to fund and can apply for as much as N5 billion under the scheme.
Once the apex bank can determine that the private company can have a substantial impact on the economy through “Performance Indicators (KPIs)”, the company would be selected. The CBN would screen and finance eligible private sector companies in 100 days, and roll over every 100 days.
The initiative, 100 for 100 PPP, is a financial instrument designed to create the flow of finance and investments to enterprises with the potential to catalyse sustainable economic growth trajectory, accelerate structural transformation, promote diversification, and improve productivity.

How it works

The Central Bank of Nigeria is prepared to select 100 private sector companies with projects that have the potential to significantly increase domestic production and productivity, reduce imports, increase non-oil exports, and overall improvements in the foreign exchange generating capacity of the Nigerian economy.
The initiative, which would be bank-led, will be rolled over every 100 days (that is, quarterly) with a new set of companies selected for financing under the initiative.
The  initiative shall be funded from the CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window as may be determined by the CBN.
The loan amount shall be a maximum of N5 billion per obligor and any amount above N5 billion shall require the special approval of CBN’s Management.
Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. The interest rate under the intervention shall not be 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 would monitor the progress of the company.

Current CBN governor

The Apex bank would set up comprehensive, regular monitoring of specific benchmarks and key performance indicators (KPIs) for selected companies including:
Rate of Growth in production output
Increase in capacity utilization
Increase in export volume
Increase in export value
Decrease in industrial raw material import volume
Decrease in industrial raw material import value
Increase in the number of jobs generated
How to apply
Interested private-sector enterprises must submit applications to their PFIs together with the necessary documentation, which includes, among other things,
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Financial statements.

Certified true copies of company registration documents evidencing the incorporation of the Company with the Corporate Affairs Commission (CAC)
Three (3) years of audited financials, including the most recent management account of the company
Evidence of the company’s, promoters’, and directors’ creditworthiness
At least two (2) credit reports of the company and the directors;
Business plan of the underlying project for which the facility is to be applied
Detailed status report on project’s capacity utilisation, production output, productivity/efficiency level, employment level, export capacity, and value creation
Increased capacity utilisation, production output, productivity/efficiency level, employment level, export capability, and value creation after funding should be projected to represent the project’s post-financing economic benefits.
Read: Companies declare massive profits on the back of CBN Intervention loans
Applicants shall notify the CBN of submitted applications via a dedicated online portal (https://100for100ppp.ng)
Here is the process your application would take before approval
Once the lending bank receives your applications, due diligence on them based on business and credit would be conducted.
After which, the lending bank would forward the applications of their eligible private sector companies to the CBN for approval by the appropriate PFI’s Credit Committee.
The CBN would screen and finance eligible private sector companies in 100 days, and rollover every 100 days.
The CBN shall release the approved sum to the PFI for onward disbursement to the selected private sector companies and successful beneficiaries would be published in National dailies for Nigerians to verify and confirm with details of facility granted, operating sector, manufacturing activities financed, and PFI.

GUIDANCE NOTE

All fields with asterisk (*) are compulsory

You must have submitted your application to your bank before filling this form and upload your application documents.

Create a User account before you submit your loan application. To complete account creation, you will have to upload your ID (drivers license or data page of international passport etc). PDF format only & one pager.

Note that during account creation, you will be asked to verify your email and phone number through a One Time Ping (OTP) that will sent to your email and phone nummber.

Prepare an executive summary of your application maximum of two (2) pages in PDF form and upload here.

Get a scanned copy of the acknowledgement letter as evidence you submitted your application to your bank where you applied for the loan and upload the PDF version here. This should be a one-pager

Ensure you enter all the correct information. You can save this application and return back to complete it

After each application a PDF document will be generated here which is your SUBMISSION SLIP, note the ID Number on it. You can access the slip through your dashboard.

The status of your application can be tracked through your dashboard

Ensure that your company details are correct – TIN and RC Number

Should you need any further clarification or assistance, email: admin@100for100ppp.ng; dfdcontact@cbn.gov.ng; or ccd@cbn.gov.ng. You can also place a call to any of these numbers: CBN Contact Centre: 07002255226; DFD Desk: 08095500774. 

Here’s the link to apply for the loan

CBN 100 for 100 PPP Loan portal Link

https://100for100ppp.ng/submit-application

CBN 100 for 100 PPP Loan

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

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.

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:

i. Manufacturing

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

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 underlyingcollateral.

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. 

Long-term loan for acquisition of plant and machinery and Working Capital

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

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. 

Participating Financial Institutions (PFIs)

Only CRR contributing Deposit Money Banks (DMBs) shall be eligible to participate under the initiative.

Repayment Of Loan

Monthly interests on the facility shall be amortised and transferred quarterly with principal repayments to the CBN. 

Collateral Requirements

The collateral acceptable under the intervention facility shall be as may be acceptable by the PFI under the RSSF-DCRR.

Agajahub publishers

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