The Central Bank of Nigeria (CBN) announced its Policy on Production and Productivity (the “New Policy”)

The Central Bank of Nigeria (CBN) announced its Policy on Production and Productivity (the “New Policy”)

Under the New Policy, the apex bank plans to advertise, screen, scrutinize and financially support 100 targeted private sector companies within 100 calendar days periods (“Investment Cycle”), commencing from 1st November 2021. Each Investment cycle shall capture a new set of 100 companies selected for financing under the initiative.

The initiative would be funded by the CBN from its Real Sector Support Facility – Differentiated Cash Reserve Requirement (RSSF-DCRR) window or any other funding window it decides to use.

Objective of CBN’s Policy on Production and Productivity

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:

  1. Increase local production and productivity.
  2. Increase non-oil exports.
  3. Catalyze import substitution of targeted commodities.
  4. Improve foreign exchange-earning capacity of the economy.

80 percent of jobs created by such projects must be for Nigerians while 50 percent of raw materials for the project must be sourced locally.

The Facility

  • Loan amount shall be a maximum of N5bn per obligor. Any amount above N5bn shall require the special approval of CBN’s management.
  • Interest rate under the intervention would be at not more than nine per cent per annum (all inclusive). 
  • The term loans would have a maximum tenor of 10 years depending on the complexity of the project, not exceeding December 31, 2031. 

Requirements for consideration

  • Brownfield: The projects for consideration shall be new projects in existing companies requiring new machinery and other support and must have the greatest potential to achieve significant scale in their in-country production and for domestic consumption and exports.
  • Greenfield: New projects may be considered subject to the discretion of the CBN.

The activities of the project to be must be in either manufacturing, agriculture and Agro-processing, extractive industries, petrochemicals and renewable energy or healthcare and pharmaceuticals.

Other activities such as logistics services and trade-related infrastructure such as cold chain solution, quality assurance infrastructure; and any other activities as may be prescribed by the CBN.

A highly satisfactory project should meet stipulated requirements by 81 to 100 per cent; a satisfactory project meets stipulated requirements by 61 to 80 per cent; a less satisfactory project meets stipulated requirements by 51 to 60 per cent while an unsatisfactory project meets stipulated requirements by zero to 50 percent.

Interested companies with satisfactory performance are required to apply through their banks to the CBN department of development finance, office of the governor, Central Bank of Nigeria, central business district, Abuja with complete documentation.

Applicants shall notify the CBN of submitted applications via a dedicated online portal ( 

The New Policy is a welcome development and a step forward towards improving businesses in Nigeria. We envisage that through the New Policy, the CBN will encourage investments, stimulate growth in local production, and ultimately improve the economy.