Commercial Banks To Stop Cash Withdrawal by States, Councils, Others in Obedience to NFIU Directives
- Banks will no longer grant request for cash withdrawals from public accounts in the country
- The prohibition affects Nigerian governors, ministers, foreign missions and other public servants
- The move is in obedience to NFIU directives to checkmate corruption among public officials
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Starting tomorrow, Wednesday March 1, 2023 commercial banks will no longer grant request from government institution seeking to withdraw cash.
Banks have already notified their customers of the new directive and urged them to use digital channels for all transactions.
Source: Facebook
In a circular dated January 4, the Nigerian Financial Intelligence Unit (NFIU) directed all financial institutions to discontinue cash withdrawals from public accounts in naira and foreign currency at all levels, including accounts of foreign missions, development partner institutions, mutual funds, and investment funds.
Also included are accounts of foreign missions operating in Nigeria, those of all development partner institutions, mutual funds and investment funds.
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Cash withdrawals from public accounts and the payment of estacodes and overseas allowances to civil and public servants in cash will be prohibited.
Local government’s have N500,000 cash withdrawal limit from public accounts and instituted funds.
Part of the guidelines reads:
“Cash withdrawals from public accounts would be treated as a money laundering offence.
“Section 2 of the MLPPA, 2022 restricts cash payments of a sum exceeding N5 million (or its equivalent) for individuals, and N10 million or its equivalent for a body corporate.
“Hence, in the unlikely event that a public official feels he may need cash withdrawal, he may apply for approval for a waiver from the Presidency which may be granted on a case-by-case basis.
“Under no circumstance shall any category of public officers be given a standing or continuous waiver to withdraw cash from any public account in any financial institution or designated non-financial institution.
“The President will only consider requests for cash withdrawals from public accounts on issues dealing with the border, defence, securities or medical.
“Where certain individuals must move with cash, it’s in such cases we say write to the president.”
NFIU also warned that any governor who breaches the law by withdrawing cash from government accounts would automatically be flagged and 167 countries would be notified.
Ministries make adjustements
TheNation reports that ministries, departments and agencies (MDAs) are bracing for the shift to a cashless government.
At the Ministry of Finance, Budget and National Planning; Budget Office of the Federation and the Central Bank of Nigeria (CBN) it was gathered that the handling of cash has been significantly curtailed or eliminated in some instances ahead of the March 1 date.
Man slumps and dies in the bank after standing for long hours
Meanwhile, in an earlier report, Legit.ng revealed a man has reportedly lost his life after standing in a queue for long hours at a bank in Delta state.
The middle-age-man who lives in was said to have visited the bank to get his ATM for him to make a withdrawal, the Nigerian police confirms.
In the last few weeks, Nigerians have waited long hours in banking halls and ATMs to make withdrawals.
Source: Legit.ng
