The head of the Nigerian Financial Intelligence Agency reported that beginning in March, Nigerian public officials will be prohibited from withdrawing cash from government bank accounts. He said that civil servants who wish to be exempt from this new regulation will need to obtain a waiver from the Nigerian Presidency.
Government employees vulnerable to money laundering
Modibbo R. Hamman Tukur, head of the Nigerian Financial Intelligence Unit (NFIU), said Nigerian government employees will be prohibited from withdrawing cash from government accounts starting March 1. The new rules, which will reportedly apply to federal, local, and state government employees, are an attempt to tackle high levels of corruption and money laundering in government.
Public officials are increasingly vulnerable to money laundering and predicate crimes because of their exposure to cash withdrawals from public accounts.
In support of Tukur’s claim, the report states that an analysis by the NFIU, an autonomous unit within the Central Bank of Nigeria (CBN), showed that between 2015 and 2022, public officials withdrew cash worth $2.45 billion from government accounts The report states. Most of the withdrawals were above set limits, the report added.
A blueprint for CBN’s new payment system
On the other hand, when cash is needed, Toucoure said, officials must apply to the Office of the President for a waiver. However, this may only be granted on a “case-by-case basis.”
In the recently releasedNigerian Payment System Vision 2025, the CBN stated that its goal is to “have a cashless and efficient electronic payment system” that supports financial services in all sectors by 2025 In order to achieve this, the CBN has set a goal of “having a cashless and efficient electronic payment system” to support financial services in all sectors by 2025. To achieve this, the CBN has implemented a number of reforms, including issuing new designs of naira bills and phasing out old bills.
The CBN has also imposed cash withdrawal restrictions on both business organizations and individuals. Recently, it has also reportedlyinstructed banks to stop withdrawing cash from their stores in the new bills.
In addition to restricting the use of cash, the CBN is also trying to promote the use of the floundering central bank digital currency. However, despite several steps taken to make the CBDC more attractive to users, Bitcoin.com News reported in October 2022 that many Nigerians have not accepted it.
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