LOANS (INTERNAL BORROWING) ACT

This Act may be cited as the Loan (Internal Borrowing) Act.

(1) The President is hereby authorised to raise a loan or loans in Nigeria not exceeding in the aggregate the sum of sixty million naira and such further sum or sums as may be necessary to defray expenses in connection with the raising thereof.
(2) Such loan or loans shall be raised in any manner provided by the Government Promissory Notes Act or by the Local Loans (Registered Stock and Securities) Act, and references in the latter Act to the general revenue and assets of Nigeria shall be construed as references to the general revenue and assets of the Federal Republic of Nigeria.

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 Federal Government 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 by the House of Representatives from time to time;
(b) for lending, in accordance with such terms and conditions as may be approved by the President, 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.

The Nigeria Local Loan Ordinance, 1951, is repealed.