Section 5: Minister to direct mode of raising loans and other particulars.

(1) The Minister shall, in respect of each loan to be raised under this Act, specify by directions published in the Federal Gazette-
(a) the sum of money to be raised by that loan;
(b) the mode or modes of raising the loan;
(c) the rate of interest payable on the loan;
(d) the dates in each year on which the half-yearly interest on the loan shall be payable;
(e) the rate of which a half-yearly appropriation out of the general revenue and assets of Nigeria shall be made as a contribution to the sinking fund established for the purpose of redeeming that loan and the date from which such contributions shall commence;
(f) the date of redemption of the registered stock or securities to be issued for the purpose of raising that loan;
(g) whether the interest payable on any registered stock, Government promissory notes or bearer bonds issued under the authority of this Act shall be exempt from all or any of the taxes and duties payable under any other enactment in force in Nigeria.
(2) In the case of a loan appropriated and applied or to be appropriated and applied for lending to the Government of a State such directions shall not require the Government of the Federation to establish a sinking fund but shall specify-
(a)
that the terms and conditions for such lending have been approved in accordance with paragraph (b) of section 3 of the Loan (Internal Borrowing) Act; and
[1958 No. 18.]
(b) the rate at which a half-yearly appropriation out of the general revenue and assets of each State concerned is required.
(3) The date of redemption of any registered stock or securities shall not be later than sixty years from the date of issue of such stock or securities.
(4) Where the Minister deems it expedient to reserve an option to redeem any registered stock or securities at any date earlier than the date of redemption specified for such stock or securities by the directions under subsection (1) of this section, he shall by such directions further specify the terms and conditions on which such stock or securities may be redeemed at any earlier date.