- The new law applies to officials at all levels of government.
- It will be in effect from March 1, 2023.
Modibbo R. Hamman Tukur, the Director of the Nigerian Financial Intelligence Unit (NFIU), has announced that, as of March 1, government employees in Nigeria would no longer be able to withdraw cash from government accounts. According to reports, the new law applies to officials at all levels of government and is an attempt to reduce rampant corruption and money laundering.
The new regulation is in line with the Nigerian government’s plan to transition to a cashless economy, according to a Reuters article. Tukur’s justifications for his choice are included in the report as well. The official warned that “civil servants are becoming more and more vulnerable to money laundering and its predicate offenses due to their exposure to cash withdrawals from public accounts.”
Cashless Payment System by 2025
The article cited an examination by NFIU, an independent body inside the Central Bank of Nigeria (CBN), as evidence that officials moved $2.45 billion in cash from government accounts between 2015 and 2022, as claimed by Tukur. According to the data, the majority of withdrawals were in excess of the limitations.
Tukur, meanwhile, stated that officials would have to get a presidential waiver if they require funds. However, approval for this could be given only “case by case.”
The Central Bank of Nigeria (CBN) recently presented a paper titled Nigeria Payments System Vision 2025, in which it stated its intention to “have a cashless and efficient electronic payment system” by the year 2025. The Central Bank of Nigeria (CBN) has introduced a variety of measures, such as the introduction of newly designed Naira banknotes, the push for e-naira, and the eventual retirement of older Naira banknotes, to assist accomplish this goal.