Buhari’s regime stops cash withdrawals on federal, state, local government, MDAs accounts

Federal, state, LG and MDA employees are to open domiciliary and naira accounts before the policy takes effect.

News Agency of Nigeria • December 20, 2022

Modibbo Hamman Tukur

The President Muhammadu Buhari regime has made plans to immediately halt cash withdrawals from accounts belonging to the federal, states, local governments and MDAs.

In a statement released on Tuesday, the Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur, stated that public personnels are to open domestic accounts in both foreign and local currencies prior to the implementation of the new policy in substitution of cash withdrawals.

He explained that the new policy was essential as a result of 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.

The action is also alleged to have been initiated in response to finding that the majority of cash withdrawals from government accounts, including payments for estacode for public officers, frequently exceed the cash withdrawal cap stipulated by the Money Laundering Act.

The NFIU boss claims that the development puts innocent public officials at risk of incarceration.

The Intelligence unit, according to Mr Tukur, is already working on a recommendation 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 control to open domiciliary and naira accounts before the policy takes effect and becomes mandated by law.

This development comes just as the President Muhammadu Buhari regime limits the over-the-counter cash withdrawal capacity of Nigerians to N100,000 weekly for individuals and N500,000 for organisations.

Although the Senate requested that the central bank increase the weekly withdrawal limit from N100,000 to N500,000, the House of Representatives ordered it to delay implementing the policy until the apex bank clarifies details of the policy to the lawmakers.

In a bid to stabilise the declining value of the naira, the CBN has continued to implement strict economic measures, such as redesigning the naira, restricting over-the-counter cash withdrawals, and constraining access to foreign exchange.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.