FG Bans Cash Withdrawal From Government Accounts as N701bn in Cash Leave Accounts in 8 Years
- The Nigerian government has moved to stop cash withdrawals from government accounts
- The directive affects both the federal, state and local government bank accounts
- NFIU DG, Modibo Turkur said that about N701 billion have left government accounts in 8 years.
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The Nigerian Financial Intelligence Unit (NFIU) has restricted cash withdrawals from all federal, state and local government accounts.
NFIU Director-General, Modibo Tukur disclosed this to journalists in Abuja on Thursday, January 5, 2023, saying that the ban will take effect on March 1, 2023.
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EFCC, ICPC, others to track cash withdrawals
Tukur said that NFIU will investigate any public officials engaged in cash transactions after February 28 this year.
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He said that the agency will partner with other anti-graft bodies such as the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC) and the police to probe government officials withdrawing cash from public accounts.
According to TheCable, The DG stated that the directive to go cashless will restrain corruption in public offices, stating that Nigeria’s money laundering laws as well as other anti-corruption laws will be brought to bear against defaulting officials.
Tukur stated that the directive is in line with Nigeria’s transition to a fully cashless economy started by the Central Bank of Nigeria (CBN).
Over N701 billion leave government accounts since 2015
Daily Trust reports that Financial institutions have been asked to stop cash withdrawals from government accounts effective March 1, 2023, and offenders would be prosecuted in line with the laws and their accomplices.
Tukur said that any withdrawals above the threshold from public accounts have been alarming and that over N701 billion has been withdrawn in cash from 2015 to date.
He said:
“This is not reversible as we are only enforcing the law. As far as we are concerned, Nigeria will become a full non-cash economy by March 1, 2023 this year.
“As a consequence, any government official that withdraws even one naira cash from any public account from March 1 will be investigated and prosecuted in collaboration with relevant agencies like EFCC, ICPC and the NPF.
The execution of the NFIU decision will become effective two months after the CBN’s cash withdrawal policy when weekly cash withdrawal limits will be fixed at N500,000 for individuals and N5 million for organisations.
The CBN directive will become effective from January 9, 2023.
New naira notes: Banks issue deadlines to customers to deposit old naira notes
Recall that Legit.ng reported that amid the bickering between the Minister of Finance, Budget and National Planning, Zainab Ahmed and The Central Bank of Nigeria (CBN) governor, Godwin Emefiele, over the redesigning of naira notes, several banks have given deadlines to their customers to deposit old naira notes.
One of the banks, Fidelity Banks, announced via its Instagram page on Saturday, October 29, 2022, that its customers have until January 31, 2022, to deposit old naira notes or risk being rejected.
The bank said it would extend working hours to 6 pm in all its branches to allow cash deposits.
Source: Legit.ng
