Section 1: Power to raise loans in Nigeria for development, etc.

(1) The Minister may in any manner authorised by the Local Loans (Registered Stock and Securities) Act or the Government Promissory Notes Act, or in any other manner authorised (whether generally or in respect of any particular loan) by the President, raise loans in Nigeria, the proceeds of which, after deducting expenses incurred in raising the loans shall be paid to the Development Fund mentioned in the Finance (Control and Management) Act and, notwithstanding the provisions of that Act relating to the purposes for which the fund may be used but subject to the other provisions of that Act, shall be applied for both or either of the following purposes, that is to say-
(a) the purposes of the rehabilitation, reconstruction and development programme;
(b) for making loans to State governments on such terms as may be approved by the Minister.
(2) No loan shall be made to a State government pursuant to subsection (1) of this section unless there is in force, a law in that State, authorising the government thereof to raise loans from the Federal Government and providing that the loans shall not be used otherwise than for the purposes of the rehabilitation, reconstruction and development programme approved by the State government.
(3) In this section-
Minister" means the Minister charged with responsibility for Finance;
"State government" means the government of any State established under the provisions of the States (Creation and Transitional Provisions) Act.