FG Suspend Cash Withdrawal From All Public Accounts

The Federal Government has suspended cash withdrawal from all public accounts with immediate effect.

A statement authorised by the Director of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Tukur stated on Tuesday.

Nigerian Financial Intelligence Unit (NFIU) is an autonomous unit within the Central Bank of Nigeria. It is the central coordinating body for the country’s Anti-Money Laundering, Counter-Terrorist Financing, and Counter-Proliferation Financing framework in Nigeria. 

Investors King understands that the suspension of cash withdrawal will enable the unit to closely monitor government spending at all levels among other tactical benefits. 

According to the statement, 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 statement added that most cash withdrawals from government accounts, including payments for estacode for public officials, often exceed the cash withdrawal limit provided by the Money Laundering Act.

Modibbo Tukur said that NFIU is putting all necessary measures in place to stop cash withdrawal from federal, states and local government accounts. 

While acknowledging the difficulty that the new policy may pose, Tukur, however noted that the unit has already prepared recommendations to the secretary to the government of the federation; all governors; and local council chairs, directing all civil servants to open domiciliary and naira accounts to accommodate the new policy.

Meanwhile, the Minister of Interior, Ogbeni Rauf Aregbesola has stated that the collaboration of NFIU with its counterparts across the world has helped the government to identify no less than 100 high-risk financiers of the Boko Haram terrorist group.

The interior minister commended the effort of the unit, noting that it took NFIU more than 18 months before the task to uncover Boko Haram sponsors was completed. 

He added that the analysis resulted in the arrest of 48 of the financiers and the ongoing prosecution of a number of them.