” Starting March 1, Nigerian officials will not be allowed to withdraw cash from government accounts”, according to a statement by the head of the Nigerian Financial Intelligence Unit (NFIU).
The new regulations, which will apply to all federal, local, and state officials, are aimed at curbing corruption and money laundering in Africa’s most populous nation and are consistent with government plans to transition to a cashless economy.
Modibbo R. Hamman Tukur, Director and Chief Executive of the NFIU, stated in the statement that “civil servants are becoming increasingly susceptible to money laundering and its predicate offenses due to their exposure to cash withdrawals from public accounts.”
NFIU’s research revealed that officials withdrew almost 1.1 trillion naira ($2.45 billion) from government accounts from 2015 to 2022, mostly exceeding prior withdrawal thresholds.
Hamman Tukur added that “in the rare event that a public official believes they may require cash withdrawal, they may apply for approval for a waiver from the presidency, which may be granted on a case-by-case basis.”
To curb inflation and advance towards a cashless economy, Nigeria’s central bank began issuing newly designed 200, 500, and 1,000 naira notes last month and imposed weekly cash withdrawal limits.
Almost 85% of the 3.23 trillion naira ($7.2 billion) in cash in circulation is now kept outside of banks.