January 05, (THEWILL) – To stop indiscriminate withdrawal of cash from public accounts, the Financial Intelligence Unit (NFIU) has directed all financial institutions in the country to halt demands for cash withdrawals from government accounts from March 1, 2023.
However, any cash withdrawal from a public account will, henceforth, require a waiver from the President.
NFIU Director/Chief Executive Officer (CEO), Moddibo Haman Tukur, who made this known at a press briefing on Thursday, warned that any government official who flouts the order will be prosecuted.
He also warned that any Governor, who withdraws cash from any public account will be investigated immediately, not minding the Governor’s immunity.
“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 and ICPC,” he added.
Directing that all transactions involving public money must be routed through the banks for the purpose of accountability and transparency, Tukur said NFIU had told banks and government agencies at all tiers of government, to move fully online.
Tukur said the three tiers of government have between now and March 1, 2023, to put their house in order and comply with the directive, as any cash transaction from March 1, from any account belonging to the government at any level, will be triggered and investigated according to the Money Laundering Act.
He said the move was in line with the resolve to fully transit the country into a cashless economy.
“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, 2023, will be investigated and prosecuted in collaboration with relevant agencies like EFCC and ICPC.
“This is not reversible as we are only enforcing the law,” he said
Giving details of the abuse of financial transactions in recent times, Tukur said despite the introduction of the cash withdrawal limits in the country, State Governments have withdrawn a total of N701 billion in cash between 2015 till date.
Also, within the same period, the Federal Government withdrew N225 billion in cash while the Local Governments withdrew a total of N156 billion in cash within seven years.
The NFIU is the central national agency responsible for the receipt of disclosures from reporting organisations, the analysis of these disclosures and the production of intelligence for dissemination to competent authorities.
The NFIU is an autonomous unit and the central coordinating body for the country’s anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/CPF) framework.
