The Complete 2004 Laws of Nigeria

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TREASURY BILLS ACT

ARRANGEMENT OF SECTIONS

SECTION

  1. Short title.
  2. Interpretation.
  3. Authority for Central Bank to issue treasury bills.
  4. Authority for Minister to issue certain bills.
  5. Charge.
  6. Proceeds.
  7. Power to lend proceeds.
  8. Expenses.
  9. Amounts and currency of bills.
  10. Authority.
  11. Regulations.
                                                                             TREASURY BILLS ACT

An Act to authorise the borrowing of money for the purposes of the Federation by the issue of treasury bills in Nigeria.

[1959 No. 11.]

[19th March, 1959]

[Commencement.]

1. Short title

This Act may be cited as the Treasury Bills Act.

  1. Interpretation

In this Act, "Minister" means the Minister charged with responsibility for matters
relating to finance.

  1. Authority for Central Bank to issue treasury bills 

(1) The Minister is hereby authorised to borrow by the issue in Nigeria of Federal
Government treasury bills, and the Central Bank of Nigeria, when authorised in writing
by the Minister, may for that purpose issue in Nigeria, within the terms of the authority
and subject to any direction given by the Minister, such Federal Government treasury
bills together with such further treasury bills as shall be required to payoff at maturity
treasury bills already lawfully issued.

(2) The principal sums represented by any treasury bills outstanding at anyone time
under the provisions of this section shall not exceed one hundred and fifty per cent of the
estimated revenue retained by the Federal Government and gross revenues of the States
during the year then current.

  1. Authority for Minister to issue certain bills

Notwithstanding the provisions of subsection (2) of section 3 of this Act, the Minister
may authorise the Central Bank of Nigeria to issue additional Federal Government treasury 
bills for such amounts as may be required to finance the cost of manufacture, shipment, 
transportation and insurance of Nigeria currency notes and coins in accordance
with the Central Bank of Nigeria Act.

[Cap. C4.]

5. Charge

The principal sums represented by any treasury bills issued under the provisions of
this Act and any interest thereon are hereby charged upon and shall be payable out of the
Consolidated Revenue Fund of the Federation.

6. Proceeds

The proceeds of the issue of the treasury bills issued under this Act shall be paid into
the Consolidated Revenue Fund.

  1. Power to lend proceeds

Where the Minister is satisfied that the proceeds of the issue of treasury bills or any
part of such proceeds should be made available by way of loan to a State, the Minister
may issue a warrant for payment in a form approved by him in favour of the Government
of the State, and moneys shall be paid out of the Consolidated Revenue Fund as directed
in the warrant.

[1961 No. 45.]

  1. Expenses

The expenses necessarily incurred in connection with the issue of treasury bills under
this Act shall be charged to the revenue of the Federation.

  1. Amounts and currency of bills

(1) Every treasury bill issued in accordance with section 3 of this Act shall be expressed to 
be in respect of a sum of N2,000 or a multiple thereof and shall be payable at
par at a date not more than twelve months from the date thereof.

(2) Treasury bills shall be denominated in naira after the coming into operation of
sections 15 and 17 of the Central Bank of Nigeria Act, and until that date shall be 
denominated in currency issued by the West African Currency Board.

[Cap. C4.]



10. Authority

The issue of treasury bills by the Central Bank of Nigeria in the form prescribed by
regulations made under section 10 of this Act shall be sufficient evidence on behalf of
any holder thereof that the authority of the Minister has been given for such issue in 
accordance with section 3 of this Act, and that such issue has been made in accordance with
this Act.

11. Regulations

The Minister, after consultation with the Central Bank, may make regulations to pre-
scribe or provide for

(a)        the presentation, form, mode or issue, mode of payment and cancellation of
treasury bills;

(b)       the issue of a new bill in lieu of one defaced, lost or destroyed;

(c)       such other matter as may seem to him necessary for the purpose of carrying
this Act into effect.

 

SUBSIDIARY LEGISLATION

No Subsidiary Legislation