GOVERNMENT PROMISSORY NOTES ACT (REVISED)
Act · Governance
An Act provides the framework for the Federal Government to issue promissory notes for domestic borrowing. It targets banks, investors, and the Debt Management Office. This supports effective cash flow and debt management.
GOVERNMENT PROMISSORY NOTES ACT (REVISED)
What Is This Policy?
An Act providing the comprehensive legal framework for Government Promissory Notes as instruments of Federal Government domestic borrowing, supplementing Treasury Bills for cash management. Constitution of the Federal Republic of Nigeria 1999 (fiscal borrowing powers); Debt Management Office Act; Central Bank of Nigeria Act; Finance (Control and Management) Act; Fiscal Responsibility Act 2007
Federal Government as issuer of promissory notes DMO and CBN managing note issuance Banks and investors holding government notes National Assembly for borrowing limits
Who Does It Target?
The Federal Government of Nigeria as the issuer of promissory notes. Banks, financial institutions, and investors holding government promissory notes. The Debt Management Office (DMO) administering federal domestic borrowing. Legal practitioners and courts adjudicating promissory note disputes.
What Does It Aim to Achieve?
Provide statutory authority for the Federal Government to issue promissory notes as part of its domestic debt management and cash flow management toolkit.
Key Features
Issuance Authority: Empowers the Government to issue promissory notes as evidence of borrowing. Interest Terms: Notes may be issued at face value or at a discount with defined interest terms. Transferability: Promissory notes are negotiable and may be freely transferred between holders. Government Obligation: Notes create a binding repayment obligation backed by government revenues.
Current Status
Rollout Stage: Active Coverage: Federal Government domestic debt instruments Beneficiaries: Government cash management; investors Funding: FGN revenues
How to Access
Purchase through CBN primary dealers or DMO Notes may be held to maturity or traded in secondary market Current issuance calendar: DMO at https://www.dmo.gov.ng Application method: Purchase through DMO at https://www.dmo.gov.ng
Official Resources
Website: https://www.dmo.gov.ng Contact: Debt Management Office (DMO)
Legal Framework
Constitution of the Federal Republic of Nigeria 1999 (fiscal borrowing powers); Debt Management Office Act; Central Bank of Nigeria Act; Finance (Control and Management) Act; Fiscal Responsibility Act 2007