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From the beginning of March, Nigerian public officers shall 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 acquire a waiver from the Nigerian Presidency.
Authorities Employees Susceptible to Cash Laundering
Nigerian authorities employees shall 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 deal with 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 determination. He mentioned:
Civil servants have gotten increasingly more susceptible 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. Many 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. Nevertheless, this may occasionally solely be granted on a “case-by-case foundation.”
In its just lately unveiled Nigeria Funds System Imaginative and prescient 2025 doc, the CBN mentioned goals to “have a cashless and environment friendly digital cost 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this, the CBN has instituted a variety of reforms that embody issuing newly designed naira banknotes and phasing out outdated ones.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.
Moreover limiting the usage of money, the CBN can be in search of to spice up the usage of its flagging central financial institution digital foreign money. Nevertheless, regardless of the a number of steps taken to make the CBDC enticing to customers, Bitcoin.com Information reported in October 2022 that many Nigerians had not embraced this.
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Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, creator and author. He has written extensively in regards to the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
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