FG Implements Policy Banning Withdrawal Of Naira From Public Accounts

The Federal Government has implemented a new policy that prohibits cash withdrawals from any public accounts.

Public employees are required to open domiciliary accounts in foreign and domestic currencies ahead of the implementation of the new policy, which comes shortly after the Central Bank of Nigeria’s new Naira withdrawal policy.

The policy was disclosed during a discussion between the CEO of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur, and the Chairman of the Independent National Electoral Commission (INEC), Prof. Mahmud Yakubu, in Abuja, according to a statement made by the Chief Media Strategist of the NFIU, Ahmed Dikko.

According to the statement, Tukur stated that the new policy was essential due to the consistent devaluation of the Naira and the implementation of a new Naira Policy, which immediately triggers Section 1 of the Money Laundering Prohibition Act.

Furthermore, 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 employees, frequently exceed the cash withdrawal cap stipulated by the Money Laundering Act. According to Tukur, this action puts innocent public employees at risk of being imprisoned.

Tukur added that the NFIU is already working on suggestions for the Secretary to the Government of the Federation, state governors, and local government chairmen across the nation, advising them to tell all public employees under their hiring to open domiciliary and Naira accounts before the policy goes into effect and becomes enforced by law.

The head of the NFIU noted that governors and LG chairmen will also need to arrange for training on how to utilize ATM and POS Services for market men and women.

He also refuted rumours that starting on January 1, 2023, the NFIU would shut down all federal government accounts.