By John Ikani
The Nigerian Financial Intelligence Unit (NFIU) has banned cash withdrawal for all federal and states accounts, effective March 1, 2023.
The NFIU also announced the prohibition of the payment of estacode and overseas allowances to civil and public servants in cash.
Addressing journalists in Abuja on Thursday, the NFIU CEO, Moddibo Tukur, said the ban was necessary to curb the rate at which monies are withdrawn from public accounts in flagrant disregard to the money laundering laws and sometimes for corruption purposes
He noted that the decision was in sync with the full transition of Nigeria into a cashless economy which the Central Bank of Nigeria has been leading.
Tukur said all financial institutions have been instructed to stop cash withdrawals from government accounts from March 1, 2023, adding that any government official who flout the order will be prosecuted alongside his or her accomplices.
What NFIU is saying
“The rate of withdrawals above the threshold from public accounts has been alarming, over N701billion has been withdrawn in cash from 2015 till date.
“The NFIU had told banks and government agencies at all levels to go fully digital by moving online, as all transactions involving public money must be routed through the banks for the purpose of accountability and transparency.
“From the 1st of March, if there is cash withdrawal from a government account of even N1, we are going to trigger a money laundering and corruption investigation in the Economic and Financial Crime Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), or the Nigeria Police.
“This guideline is not reversible because we are going by the provisions of the law. If the National Assembly deems it fit to accompany it with an act of the parliament to outlaw cash withdrawals from the public accounts, then we are happy.”
The NFIU boss, however, added that the President is in the position to grant waivers to government officials based on considerations.
He added, “For government exigencies, only the President has the power to grant any waiver to any government official considering the importance of the situation; either for national security, health, or other important reasons.”
