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CBN introduces new financial instrument to facilitate local production

“Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity, and to immediately transform and jumpstart the productive base of the economy.”

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The Central Bank of Nigeria (CBN) has announced the introduction of a new financial instrument to be known as “The 100 for 100 Policy on Production and Productivity” to boost local production and productivity in various sectors of the economy.

Godwin Emefiele, the CBN Governor, disclosed this in Abuja on Monday, October 25, during the official launch of the Central Bank Digital Currency also known as the eNaira.

The governor noted that the instrument is expected to reverse Nigeria’s reliance on imports said that Emefiele will be anchored in the Development Finance Department of the apex bank under the direct supervision of the CBN Governor.

Emefiele said the initiative was based on the conviction that with the right support, the country will begin to see a significant, measurable and verifiable increase in local production and productivity, reduction in certain imports, increase in non-oil exports, and improvements in foreign exchange-generating capacity of the economy.

According to him, this would begin from November 1, this year, noting that the apex bank will be rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm

He said: “Working through banks, the financial instrument will be available to their customers in critical areas to boost the production and productivity, and to immediately transform and jumpstart the productive base of the economy.

“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.

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“The purpose of this instrument is to take further steps to reverse our over-reliance on imports. 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.

“This, in my view, is 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.”

 

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