Section 10: Central Bank's power to finance marketing operations.

(1)
Without prejudice to so much of section 26 of the Central Bank of Nigeria Act as relates to the powers of that Bank to grant advances and provisions for securities, the Central Bank shall, to the exclusion of any other bank (within the meaning of the Banks and other Financial Institutions Act) be responsible for granting advances to the Commodity Board for the purposes of this section.
[Cap. C4.]
(2) Such advances shall be-
(a) for such period as may be agreed between the relevant Board and the Central Bank at a minimum rate of interest which shall be at least one per cent above the Central Bank's minimum rediscount rate; and
(b) without prejudice to subsection (3) of this section, upon such conditions as the Central Bank may, after consultation with the Minister, specify.
(3) The advances referred to in subsection (1) of this section may be granted in any particular case only where a guarantee is given in writing by the Federal Government to the Central Bank on behalf of the Board concerned, so however that-
(a) the total advances which may be granted shall not exceed an amount considered by the Bank to be adequate for the Board concerned to commence its operations at the beginning of the season; and
(b)
any such advances shall be secured so soon after the advances have been granted as may be agreed by the Central Bank (either in part or in whole) as prescribed in section 26 (1) (e), (k) or (l) of the Central Bank of Nigeria Act and the said provisions shall be so construed.
[Cap. C4.]
(4) The Board concerned shall ensure that such advances shall be used by that Board solely for the purpose of-
(a) financing any purchasing and marketing operations authorised to be undertaken by any such Board or pursuant to this Act; and
(b) financing, with the approval of the Central Bank, such other operations as may be incidental thereto.
(5) The reference in this section to the granting of advances includes a reference to the provision of credit facilities.