In a bid to support liquidity in the private sector, the Central Bank of Nigeria (CBN) on Monday divulged another monetary instrument called “The 100 for 100 PPP.”
The PPP-Policy on Production and Productivity was intended to expand private sector subsidizing, support usefulness, empower trades, lessen current gigantic imports, and eventually help Naira from additional depreciation.
The CBN Governor, Godwin Emefiele, who declared this at the launch of the CBN digital cash, the eNaira, said the new arrangement would go public to the world on November 1.
In any case, he was quiet on the aggregate sum focused on with the new monetary instrument.
Emefiele said: “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.
He said the CBN would advertise, screen, and financially support 100 targeted private sector companies in 100 days, beginning from November 1.
He added: “The purpose of this instrument is to take further steps to reverse our over-reliance on imports.”
Africa’s biggest economy relies generally upon imports and clearly, rising dollar request has come down on the naira as foreign exchange earnings thin and reserves struggle. The reserve have figured out how to surpass $40 billion in several months, helped by continues of a new Eurobond issuance.
“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,” the CBN governor stated.