Section 76: Power to withhold Payment from the Federation Account Cap 16 LFN.

Notwithstanding the provisions of the Allocation of Revenue Federation Account, etc. Act, the Government of the Federation of Nigeria may issue directives to the Federal Minister of Finance or the Accountant- General of the Federation, as the case may be, not to pay in any year to any State any amount standing to the credit of that State in the Federation Account if-(a) any loan made to the State by the Government of the Federation at any time, has not been repaid after repayment has fallen due;
(b) any foreign loan is outstanding against the State for Which no adequate arrangement for payment has been made or after such repayment has fallen due ;
(c) the Government of the Federation has given guarantee for any State in respect of any foreign loan, contract or project, and the State in question has not repaid the loan or has not fulfilled its obligation under the contract or arrangement.