Section 4: Application of loan.

The sums raised under the provisions of this Act, shall, save in respect of the amount or amounts necessary to defray the expenses in connection with the raising thereof, be appropriated and applied in respect of the following purposes-(a) for the Economic Programme of the Government of the Federation as set out in Sessional Paper No.2 of 1956 and approved by resolution of the House of Representatives on the 15th March, 1956, as such may be amended from time to time;
(b) for lending, in accordance with such terms and conditions as may be approved by the Minister, to the Government of any State, if a Law has been enacted by the House of Assembly of that State-
(i) empowering the Government of that State to borrow money from the Government of the Federation,
(ii) charging any such loan on the revenues of that State,
(iii) providing that the purposes to which any such loan may be applied shall be limited to meeting in whole or in part capital expenditure comprising part of a development programme approved by the House of Assembly of that State;
(c) lending to any Federal statutory corporation, which is empowered under the provisions of any law enacted by the National Assembly or having effect as if it had been so enacted to borrow money.