FG to ban cash withdrawals from public accounts

The Federal Government is to stop cash withdrawal from all public accounts with immediate effect.

In place of cash withdrawals, public officers are to open domiciliary accounts in foreign and local currencies ahead of the commencement of the new policy, which comes on the heels of the new Naira withdrawal policy announced by the Central Bank of Nigeria, CBN.

Director/Chief Executive Officer, CEO of Nigerian Financial Intelligence Unit, NFIU, Modibbo Tukur, in a statement, yesterday, gave the new directive at a parley with the Chairman of Independent National Electoral Commission, INEC, Prof. Mahmud Yakubu, in Abuja.

Section 1 of Money Laundering Prohibition Act activated

The statement by the NFIU’s Chief Media Analyst, Ahmed Dikko, said that 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 action is also said to have been activated following observation that most cash withdrawals from government accounts, including payments for estacode for public officials, were often in excess of the cash withdrawal limit provided by the Money Laundering Act.