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FG to stop public gov’t account withdrawals

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By Abdulwasiu Usman

The policy will mandate domiciliary, local bank account for gov't office holder.

The federal government of Nigeria has moved to enforce a new policy that will restrict the withdrawal of cash from all public accounts with immediate effect. The policy will mandate those holding a position of public office to open both domiciliary and local bank accounts. According to a statement signed by the Nigerian Financial Intelligence Unit (NFIU)’s Chief Media Analyst, Ahmed Dikko, the new policy was disclosed by the Director/CEO of the unit, Modibbo Hamman Tukur, at a parley with the Chairman of Independent National Electoral Commission (INEC), Prof. Mahmud Yakubu, in Abuja.

As per the statement, the new policy was propelled due to the persistent devaluation of the Naira and the introduction of a new Naira Policy, which automatically activates Section 1 of the Money Laundering Prohibition Act. This new policy comes at the imminent decision point of when the Central Bank of Nigeria (CBN) had just initiated a policy to redesign naira notes and introduce a new policy that limits cash withdrawal to N100,000 for individuals and N500,000 for corporate organizations per week.

This new policy will enable transparency and accountability.

According to the CBN policy, which also limits the POS withdrawal to N20,000 per day, has been implemented to promote and enhance the country’s cashless policy and tackle money laundering and vote-buying, among other vices, as the 2023 general election nears. Also, the disclosed statement made it known that the move to prohibit cash withdrawal from public accounts was prompted by an observation which reveals 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.

An atmosphere where Public office holders withdraw massive cash, as asserted, does not only violate the country’s Money Laundering Act but also enables corruption. Tukur stated that the new policy would enable transparency and accountability, exposing public officials to being liable to imprisonment in situations of misconduct. He noted that the NFIU is already establishing an advisory to the Secretary to the Government of the Federation, state governors and local government chairmen across the country.

Government has reiterated strong firmness in implementing the policies.

Main objective is to direct all public servants in their employ to open both domiciliary and naira accounts before the policy, which becomes compulsory by law, is fully implemented. With numerous monetary policies passed into law in 2022 alone, President Muhammadu Buhari’s administration appears to be on a last-minute push to enforce transformational policies in the country’s financial industry. The administration has reiterated strong firmness in implementing the policies despite public outcry about the Naira redesign and the new withdrawal limits.

The apex bank had earlier lamented about the excess amount of the naira in circulation, saying there is much less in the banks’ vaults. However, experts, lawmakers, and the general public raise concerns over the cash withdrawal policy, noting that it will have adverse effects on Small and Medium Enterprises (SMEs), which could end by stifling the growth of the country’s economy. Meanwhile, the CBN governor, Godwin Emefiele, noted that the policy is fully supported by the president.

More should be done to organize training on how to use ATM and POS.

Additionally, Emefiele explains that the apex bank has moved to put in place necessary measures to onboard rural areas residents and enable financial inclusion across the country. On his part, Tukur stated that governors and local government chairmen will need to organize training to educate and enlighten rural area residents, market men and women on how to make use of their debit cards via ATM and POS Services. This is also perceived as part of the driving measure to promote financial inclusion in the country.


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Ask Nigeria
Admin
1 year ago

FG to stop public gov’t account withdrawals – The policy will mandate domiciliary, local bank account for gov’t office holder. – Express your point of view.

Abusi
Abusi
Member
1 year ago

I agree with the government that there is need to stop public withdrawal from government agencies. It will help breed transparency and accountability.

Taiwoo
Taiwoo
Member
1 year ago

We agree that it is satisfactory that the Nigerian federal government has implemented a new regulation that would immediately limit the ability to withdraw funds from any and all government accounts.

Chibuzor
Chibuzor
Member
1 year ago

Those who occupy public office will be required under the policy to open bank accounts in their home country as well as in their respective communities.

Hassan Isa
Hassan Isa
Member
1 year ago

The ongoing devaluation of the Naira, as well as the implementation of a new Naira Policy, were the driving forces behind the adoption of the new policy.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

It has been stated that an environment in which public office holders remove enormous amounts of cash is not only in violation of the nation’s Money Laundering Act but also fosters the possibility of corruption.

Tonerol10
Tonerol10
Member
1 year ago

The policy will mandate domiciliary, local bank account for gov’t office holder. Whatever that will benefit Nigerians is to done

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
1 year ago

Recently, the central bank had expressed concern over the excessive number of naira that is currently in circulation, noting that there is a significantly lower amount of cash stored in the vaults of the banks.

Adesanyaj72
Adesanyaj72
Member
1 year ago

Despite the criticism from the general people against the redesigned Naira and the increased withdrawal limitations, the administration has reaffirmed its strong and determined will to execute the policy.

theApr
theApr
Member
1 year ago

As the 2023 general election draws closer, the CBN policy, which also caps POS withdrawals at N20,000 per day, has been put in place to promote and strengthen the nation’s cashless policy and combat, among other vices, money laundering and vote-buying.

Kazeem1
Kazeem1
Member
1 year ago

This will have a negative impact on small and medium-sized businesses (SMEs), which may ultimately stifle economic expansion in the country.

Ultra0711
Ultra0711
Member
1 year ago

Good there should also be a policy regulating public office holder’s withdrawals too. By then we will now be under the same flag.

Remi1
Remi1
Member
1 year ago

It is claimed that a climate in which public office holders regularly remove large sums of money not only violates the nation’s anti-money laundering laws but also fosters corruption.

Adeolastan
Adeolastan
Member
1 year ago

If this policy is implemented and monitor very well,it can reduce ways which government officials syphon money through corruption.

Haykaylyon26
Member
1 year ago

It will be good to stop public withdrawal from government agencies since we are adopting new policy it will show the flow of currency and accountability

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

I agree with the government that there is need to stop public withdrawal from government agencies. It will help breed transparency and accountability

jdpumping
Member
1 year ago

I’m in total support of any law by government that would improve transperancy and expose corrupt officials in government and also help with the devaluation of naira.

Christiana
Christiana
Member
1 year ago

Public office holders removing huge amounts of money is said to contravene anti-money laundering rules and promote corruption.

Tolaniiii
Tolaniiii
Member
1 year ago

The increasing devaluation of the Naira, as well as the installation of a new Naira Policy, were the driving causes behind the acceptance of the new policy. The Naira Policy was also a driving force behind the adoption of the new policy.

Bola12
Bola12
Member
1 year ago

The administration is determined to implement the idea despite public criticism of the revised Naira and enhanced withdrawal limits.

DimOla
DimOla
Member
1 year ago

CBN has been releasing policies to combat the rising inflation but consideration should be made by CBN before taking some steps. The proposed withdrawal limit wouldn’t help the country because most people are not use the cashless transaction yet. I hope the policy on public account holding will will favour the country.

SarahDiv
Member
1 year ago

The policy formed restricting public account withdrawal will be very effective against corruption and the likes but CBN should endeavor to prevent the policy affecting the masses. Not even in this time of inflation and hardship because it will lead to uproar.