NFIU Claims That The FG Will Be Halting Cash Withdrawals From All Government Accounts
With immediate effect, all public accounts will no longer be used for cash withdrawals by the federal government. Before the new policy, which follows the new Naira withdrawal policy issued by the Central Bank of Nigeria, CBN, public personnel are required to create domestic accounts in foreign and local currencies in place of cash withdrawals.
The new direction was given at a meeting with the head of the Independent National Electoral Commission, Prof. Mahmud Yakubu, in Abuja, according to a statement released yesterday by the director/chief executive officer of the Nigerian Financial Intelligence Unit, NFIU, Modibbo Tukur. The introduction of the new policy became necessary as a result of the sustained devaluation of the naira and the introduction of a new naira policy, which automatically activates Section 1 of the Money Laundering Prohibition Act, according to a statement by the NFIU’s chief media analyst, Ahmed Dikko.
It is further claimed that the action was brought about as a result of observations that the majority of cash withdrawals from government accounts, including payments for estacode for public employees, frequently exceeded the cash withdrawal cap stipulated by the Money Laundering Act. Finally, the NFIU boss claims that the development puts innocent public officials at risk of incarceration.