Governors May Clash With Financial Agencies Over Cash Withdrawal

Patrick OdeyApril 3, 2023

1 minute read

The Nigeria Governors Forum (NGF) and the Nigerian Financial Intelligence Unit (NFIU) may clash over cash withdrawals and the use of security votes.

Recall that the NFIU had placed a restriction on cash withdrawals from public accounts.

The NFIU had in January announced that “Nigeria will become a full non-cash economy by March 1”.

It added: “As a consequence, any government official that withdraws even one naira cash from any public account from March 1 will be investigated and prosecuted in collaboration with relevant agencies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).”

The NFIU had told banks and government agencies to move fully into online payments “as all transactions involving public money must be routed through the banks for the purpose of accountability and transparency.”

“Any government official who flouts the order will be prosecuted alongside his or her accomplices,” the NFIU warned.

Due to the controversy arising from the directive, the 36 governors will engage the leadership of the anti-graft agencies, the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS) and others in a virtual meeting on Tuesday on how to better manage security votes tomorrow.

Ahead of the meeting, the governors have been advised to spend whatever they want, but not in cash.

A source at the NFIU told The Nation: “Nobody is saying the governors cannot do anything with their money. They should just do the right thing.

“Must they spend security votes in cash? If it is payment they want to do, they can do it through transfer. It doesn’t have to be in cash.”

The NFIU guidelines barring governors, ministers, foreign missions and other public servants from making cash withdrawals from public accounts came into effect on March 1.