Nigeria stops cash withdrawals from government accounts - Economics

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Report: Nigeria stops cash withdrawals from government accounts

From the beginning of March, Nigerian officials will be prohibited from lifting cash from state bank accounts, said the head of the Nigerian Financial Intelligence Unit. Officials who want to be excluded from this new regulation must obtain an exemption from the Nigerian presidency.

government agent who are susceptible to money laundering

From March 1st,

nigerian government agents will be prohibited to withdraw cash from government accounts, said Modibbo R. Hamman Tukur, head of the Nigerian Financial Intelligence Unit (NFIU). The new rule, which is reported to be for federal, local and state officials, aims to combat the high level of corruption and money laundering in the government.

also a target = "_ blank" href = "https://www.reuters.com/world/africa/nigeria-bar-cash-withrawals-government-aTement-2023-01-07/#:text=abuja%20jan%20(reuters)es )ar Rel = "noopener"> Reuters report said that the new rule is associated with the aim of the Nigerian government to achieve a cashless economy. The report also quotes Tukur, who explains the reasons for this decision. He said:

civil servants are becoming increasingly susceptible to money laundering and their previous deeds because they are exposed to cash withdrawals from public accounts.

In order to support Tukurs, the report said that an analysis of the NFIU-an autonomous unit within the central bank of Nigeria (CBN)-showed that officials had withdrawn cash from government accounts between 2015 and 2022. Most withdrawals were above the specified limits, added the report.

The draft for the new payment system from CBN

meanwhile Tukur said that civil servants in cases where cash is needed must apply for an exception to the presidency. However, this can only be granted "in individual cases".

in his recently Unveiled the nigeria Payments System Vision 2025-Document CBN depends on "having a cashless and efficient electronic payment system", which supports financial services in all sectors by 2025. To achieve this, the CBN initiated a number of reforms, including new editions designed Naira banknotes and let old ones expire.

The CBN also imposed Cash withdrawal limits for both companies and for individuals. Recently also the bank allegedly instructed banks to insert out of the new banknotes.

In addition to limiting the use of cash, the CBN also tries to promote the use of its weakening digital currency of the central bank. Despite the various steps that were taken to make the CBDC attractive for users, Bitcoin.com News in October 2022 that many Nigerians had not accepted this.

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.












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