FG moves to ban withdrawal of cash from all public accounts

FG moves to ban withdrawal of cash from all public accounts

The Federal Government has set in motion a new policy banning the withdrawal of cash from all public accounts.


In place of cash withdrawals, public officers are to open domiciliary accounts in foreign and local currencies ahead of the commencement of the new policy, which follows on the heels of the new Naira withdrawal policy introduced by the Central Bank of Nigeria.


A statement released by the Chief Media strategist of the Nigerian Financial Intelligence Unit (NFIU), Ahmed Dikko, says that the policy was announced during a parley between the CEO of NFIU,  Modibbo Hamman Tukur, and the Chairman of Independent National Electoral Commission (INEC), Prof. Mahmud Yakubu, in Abuja.


The statement added that Tukur said the introduction of the new policy became necessary following the consistent devaluation of the Naira and the introduction of a new Naira Policy, which automatically activates Section 1 of the Money Laundering Prohibition Act.


 The action is also said to have been activated following the observation that most cash withdrawals from government accounts including payments for estacode for public officials, are often in excess of the cash withdrawal limit provided by the Money Laundering Act. Tukur said this action exposes innocent public officials to being liable to imprisonment. 


Tukur also said the NFIU is already developing an advisory to the Secretary to the Government of the Federation, state governors and local government chairmen across the country to direct all public servants in their employ to open domiciliary and Naira accounts ahead of the commencement of the policy which becomes compulsory by law.


The NFIU boss added that governors and LG chairmen will also need to organize training for market men and women on how to use ATM and POS Services.


He denied reports claiming the NFIU would block all federal government accounts from January 1, 2023.

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