INTERNAL LOANS (REHABILITATION, RECONSTRUCTION AND DEVELOPMENT) ACT
Act · Finance
An Act authorizes the Federal Government to raise internal loans for rehabilitation, reconstruction, and development. It targets the Federal Government as the borrower and domestic investors who buy bonds. This provides funding for key projects.
INTERNAL LOANS (REHABILITATION, RECONSTRUCTION AND DEVELOPMENT) ACT
What Is This Policy?
An Act specifically authorising the Federal Government to raise internal (domestic) loans for rehabilitation, reconstruction, and development purposes, providing explicit statutory authority for domestic development financing.
Who Does It Target?
Federal Government as the borrower Debt Management Office coordinating internal development borrowing Domestic institutional investors buying development bonds National Assembly providing appropriation authority
What Does It Aim to Achieve?
Provide explicit statutory authority for domestic borrowing specifically earmarked for rehabilitation, reconstruction, and capital development projects.
Key Features
Specific Purpose: Internal loans raised under this Act must be used for rehabilitation, reconstruction, and development. Legal Authority: Provides constitutional and statutory basis for domestic development borrowing. Accountability: Requires reporting to the National Assembly on utilisation of development loan proceeds. Debt Service: Development loan servicing is a charge on the Consolidated Revenue Fund.
Current Status
Rollout Stage: Active Coverage: Federal Government development finance Beneficiaries: Nigerian public through development financing Funding: Domestic bond proceeds
How to Access
Investors: purchase development bonds through CBN primary dealers Projects financed must be approved capital development expenditure Application method: Bond investment: through DMO at https://www.dmo.gov.ng
Important Terms
Loan proceeds diverted from development purposes are unlawfully applied Development bonds are charged on the CRF — sovereign guarantee Annual audit of loan utilisation by the Auditor General is mandatory
Official Resources
Website: https://www.dmo.gov.ng Contact: Debt Management Office (DMO)
Legal Framework
Enacted under the legislative powers of the National Assembly vested by Section 4 of the 1999 Constitution. Operates alongside the Debt Management Office Establishment Act 2003, the Fiscal Responsibility Act 2007, and the Finance (Control and Management) Act, providing specific legislative authorisation for post-conflict reconstruction borrowing.