According to the Nigerian Financial Intelligence Unit (NFIU), the government intends to prohibit cash withdrawals from federal, state, and local government accounts.
Modibbo Tukur, director/CEO of NFIU, announced in a statement signed by Ahmed Dikko, the unit’s chief media analyst, on Tuesday.
Tukur, according to the statement, met with Mahmud Yakubu, chairman of the Independent National Electoral Commission (INEC), on Monday.
The government is putting all necessary measures in place to stop cash withdrawal from federal, states and local government accounts, he said.
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 also stated that most cash withdrawals from government accounts, including payments for estacode, frequently exceed the money laundering act’s cash withdrawal limit.
He claims that this puts public servants in danger of being imprisoned.
Furthermore, Tukur stated that the NFIU has already prepared recommendations for the secretary to the federal government, all governors, and local council chairs, directing all civil servants to open domiciliary and naira accounts before the implementation of the policy.
According to the NFIU CEO, governors and council chairmen will also need to organize training for market men and women on how to use ATMs and point of sale (POS) services.
However, he denied reports that the NFIU would block FG accounts in January 2023.
Meanwhile, the unit’s decision follows the Central Bank of Nigeria’s (CBN) cash withdrawal policy, which limits weekly cash withdrawals to N100,000 for individuals and N500,000 for corporations.
The daily cash withdrawal limit at POS terminals has also been reduced to N20,000.
The policy will go into effect nationwide on January 9, 2023.