FG To Stop Cash Withdrawals From Accounts Of All Levels Of Govt

The Nigerian Government has said there is a plan to stop cash withdrawals from federal, state, and local government accounts.

Naija News reports that the Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Tukur, made this known at a parley with the Chairman of the Independent National Electoral Commission (INEC), Mahmood Yakubu, on Monday.

In a statement on Tuesday, signed by the Unit’s Chief Media Analyst, Ahmed Dikko, the NFIU boss said most cash withdrawals from government accounts are often in excess of the cash withdrawal limit.

Tukur added that the excess cash withdrawal puts public servants at risk of imprisonment, refuting reports that the NFIU will block FG accounts in January 2023.

He said: “The government is putting all necessary measures in place to stop cash withdrawal from federal, state, and local government accounts.

“Because of the consistent devaluation of the naira and the introduction of a new naira policy, section 1 of the money laundering prohibition act is automatically activated”.

Tukur further said most cash withdrawals from government accounts including payments for estacode are often in excess of the cash withdrawal limit provided by the money laundering act.

He added that the NFIU has already prepared recommendations to the Secretary to the Government of the Federation, Boss Mustapha; all governors; and local council chairs, directing all civil servants to open domiciliary and naira accounts prior to the commencement of the policy.

The NFIU CEO said governors and council chairmen will also need to organise training for market men and women on how to use Automated Teller Machines (ATM) and point of sale (POS) services.

Meanwhile, the unit’s decision comes on the back of the Central Bank of Nigeria’s (CBN) cash withdrawal policy, where weekly cash withdrawals are fixed at N100,000 for individuals and N500,000 for corporates.

Maximum cash withdrawal at POS terminals has also been reduced to N20,000 daily.

The policy is scheduled to take effect nationwide from January 9, 2023.