From the beginning of March, Nigerian public officers will probably be barred from withdrawing money from authorities financial institution accounts, the top of the Nigerian Monetary Intelligence Unit reportedly mentioned. Public officers that wish to be exempted from this new regulation should receive a waiver from the Nigerian Presidency.
Authorities Staff Susceptible to Cash Laundering
Nigerian authorities employees will probably be prohibited from drawing money from authorities accounts beginning on March 1, Modibbo R. Hamman Tukur, the top of the Nigerian Monetary Intelligence Unit (NFIU), has mentioned. The brand new rule, which reportedly applies to federal, native and state officers, seeks to sort out the excessive ranges of corruption and cash laundering in authorities.
As well as, a Reuters report mentioned the brand new rule in is tandem with the Nigerian authorities’s purpose of reaching a cashless financial system. The report additionally quotes Tukur explaining the explanations behind this resolution. He mentioned:
Civil servants have gotten increasingly weak to cash laundering and its predicate offences resulting from their publicity to money withdrawals from public accounts.
To assist Tukur’s assertions, the report mentioned an evaluation by NFIU — an autonomous unit throughout the Central Financial institution of Nigeria (CBN) — had proven that between 2015 and 2022 officers withdrew money equal to $2.45 billion from authorities accounts. A lot of the withdrawals had been above the set limits, the report added.
The CBN’s New Funds System Blueprint
In the meantime, in cases the place money is required, Tukur mentioned officers should apply for a waiver from the presidency. Nonetheless, this will solely be granted on a “case-by-case foundation.”
In its not too long ago unveiled Nigeria Funds System Imaginative and prescient 2025 doc, the CBN mentioned goals to “have a cashless and environment friendly digital fee system” that helps monetary companies in all sectors by 2025. To assist it obtain this, the CBN has instituted a variety of reforms that embody issuing newly designed naira banknotes and phasing out previous ones.
The CBN has additionally imposed money withdrawal limits for each company organizations and people. Just lately, the financial institution additionally reportedly directed banks to cease over-the-counter money withdrawals of the brand new banknotes.
In addition to limiting using money, the CBN can also be looking for to spice up using its flagging central financial institution digital forex. Nonetheless, regardless of the a number of steps taken to make the CBDC engaging to customers, Bitcoin.com Information reported in October 2022 that many Nigerians had not embraced this.
Register your e mail right here to get a weekly replace on African information despatched to your inbox:
What are your ideas on this story? Tell us what you assume within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct supply or solicitation of a suggestion to purchase or promote, or a advice or endorsement of any merchandise, companies, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, immediately or not directly, for any injury or loss triggered or alleged to be attributable to or in reference to using or reliance on any content material, items or companies talked about on this article.