How to Apply and Secure N5 Billion Loan from CBN’s 100 for 100 Policy Scheme

How to Apply and Secure N5 Billion Loan from CBN’s 100 for 100 Policy Scheme

  • Loan applicants for the Central Bank of Nigeria's 100 for 100 Policy Scheme has been asked to submit various documents in order to get up to N5 billion loan
  • The documents include certificate of registration from CAC, three years audited financial reports and other vital documents
  • The CBN gave out over N23 billion to the first tranche of beneficiaries under the loan scheme which was launched in November 1, 2021

Recently, Nigeria’s apex bank, the Central Bank of Nigeria released the names of beneficiaries of its N23.2 billion loan under the 100 for 100 Policy on production and productivity (PPP).

Applicants for the loan should know that the CBN’s loan limit is B5 billion, although, applicants can secure above the N5 billion threshold subject to CBN’s approval.

CBN's 100 for 100 loan policy scheme
CBN's 100 for 100 loan policy scheme Credit: next24online/NurPhoto
Source: Getty Images

The CBN will select 100 private sector companies which have projects with the potential to greatly boost local productivity and have foreign exchange capacity for Nigeria.

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Loan limits types

Companies importing equipment and machinery can secure long-term loans including working capital loans. They will be part of the 100 for 100 intervention. The initiative’s maximum lending ceiling is N5 billion and they need to get CBN’s approval for loans above the N5 billion threshold.

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Applicants may have up to 10 years to repay the loans depending on the type of loans secured and may last till December 31, 2031 while the working capital arrangement will have a one-year term with the option of rolling it over to three years. A two-year moratorium will also apply.

Interest rate

The interest rate will not exceed 5 per cent per annum up to 28th February 2022. After that, the interest rate on the facility will revert to 9 per cent per annum from March 1, 2022.

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Requirements for collateral

Collateral acceptable under the CBN’s Real Sector Support Facility applies to the 100 for 100 PPP initiative.

The monthly interest on the facility shall be amortized and transferred quarterly with principal repayments to the CBN.

How to apply

Companies keen on the loan are to submit their applications to commercial banks with requisite documentation, which includes:

Evidence of company incorporation with Corporate Affairs Commission (CAC)

Three years of audited financial reports.

Evidence of the company’s creditworthiness, including its promoters and directors.

A minimum of two credit reports of the company and directors.

Business plan of the underlying project in need of financing.

Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, value creation.

Detailed report on the post-financing economic benefit of the project.

Applicants shall notify CBN of submitted applications via a dedicated online portal for tracking and monitoring application status.

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243 Companies Fight For CBN’s N23 Billion has reported that About 243 companies applied for a loan scheme by the Central Bank of Nigeria (CBN).

In the end, the Central Bank of Nigeria (CBN) said about 28 companies whose projects pleased the bank’s conditions for ‘100 for 100 Policy for Production and Productivity.’

The apex bank said that this happened after 243 firms submitted applications with projects valued at N321.06bn for the 100 loan scheme.


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