INTERNAL LOANS ACT
Act · Governance
An Act provides legal authority for the Federal Government to contract domestic loans through securities. It targets government agencies and financial institutions involved in borrowing. This supports the development of the internal capital market.
INTERNAL LOANS ACT
What Is This Policy?
An Act providing the legal authority for the Federal Government to contract domestic loans through the issuance of securities and other instruments of internal borrowing.
Who Does It Target?
Federal Government as the borrower DMO managing internal debt CBN as primary dealer and fiscal agent Banks and institutional investors purchasing government securities
What Does It Aim to Achieve?
Provide a clear statutory basis for the Federal Government's domestic borrowing programme, enabling the development of the internal capital market through government securities issuance.
Key Features
Borrowing Authority: Empowers the Federal Government to raise money through internal loans up to limits approved by the National Assembly. Security Types: Government may issue bonds, treasury bills, and other securities under the Act. Servicing: Debt service on internal loans is a first charge on the Consolidated Revenue Fund. Registry: DMO maintains the register of all internal government securities.
Current Status
Rollout Stage: Active Coverage: Federal Government domestic capital market Beneficiaries: Government financing; domestic capital market development Funding: FGN bond and T-Bill proceeds
How to Access
Investors purchase FGN securities through CBN primary dealers or the DMO retail platform Retail investors may purchase FGN savings bonds through banks Application method: Purchase FGN securities through DMO at https://www.dmo.gov.ng
Important Terms
Internal loans are charged on the CRF — they are always repaid FGN securities are the benchmark risk-free asset for Nigerian financial markets Borrowing beyond the approved limit requires supplementary appropriation
Official Resources
Website: https://www.dmo.gov.ng Contact: Debt Management Office (DMO)
Legal Framework
Enacted under the legislative authority of the National Assembly pursuant to Section 4 of the 1999 Constitution. Operates alongside the Debt Management Office Establishment Act 2003, the Fiscal Responsibility Act 2007, the Finance (Control and Management) Act 1958, and the Central Bank of Nigeria Act 2007.