FG Set To Ban Cash Withdrawals From Public Accounts

The Federal Government is set to stop the withdrawal of cash from all public accounts with immediate effect.

Before the new policy takes effect, public employees must open domiciliary accounts in both foreign and local currencies in place of cash withdrawals.

This was revealed in a statement by the Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur. He gave the new directive at a parley with the Chairman of Independent National Electoral Commission (INEC), Prof. Mahmud Yakubu, in Abuja.

The statement, which was signed by the NFIU’s Chief Media Analyst, Ahmed Dikko, said that 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.

READ ALSO: FG Acknowledges Whistleblower Has Lost Momentum, Drafts New Bill

Additionally, it is claimed that the action was brought about as a result of the discovery that the majority of cash withdrawals from government accounts, including payments for estacode for public officials, frequently exceed the cash withdrawal limit stipulated by the Money Laundering Act.

The development, according to the NFIU boss, 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.

Governors and LG chairmen, according to Tukur, would also need to arrange for training on how to use POS and ATM services for market men and women.

Tukur further denied allegations made by uninformed individuals that the NFIU would shut down all federal government accounts by January 1, 2023.