Govs fault NFUI's ban on cash withdrawals from govt's accounts

• Published date: 21 January 2023
• Publication title: Nigeria - The Nation

Governors of the 36 States have faulted the recent directive by the Nigeria Financial Intelligence Unit (NFIU) banning banks from executing demands for cash withdrawals from all public accounts.

The Governors, at a virtual meeting held on January 19, noted that the ban was beyond the powers conferred on the NFIU by law.

They argued, in a communiqué made available early on Saturday by the secretariat of the Nigeria Governors' Forum (NGF), that NFIU acted outside its legal remit and mandate.

In the communique signed by the NGF Chairman, Governor Aminu Tambuwal of Sokoto State, the NGF expressed some reservations about the recent monetary policies introduced by the Central Bank of Nigeria (CBN), particularly the redesigned naira notes.

The NGF elected to constitute a committee, to be headed by a former CBN governor and Governor of Anambra State, Prof Charles Soludo to engage the CBN 'in addressing anomalies in the country's monetary management and financial system.'

Part of the communique reads: 'We, the members of the Nigeria Governors' Forum (NGF), received a briefing from the Governor of the Central Bank of Nigeria, Mr Godwin Ifeanyi Emefiele, on the naira edesign, its economic and security implications including the new withdrawal policy.

'Governors are not opposed to the objectives of the Naira redesign policy.

'However, we observe that there are huge challenges that remain problematic to the Nigerian populace.

'In the circumstances, governors expressed the need for the CBN to consider the peculiarities of states, especially as they pertain to financial inclusion and under-served locations.'

The NGF members 'resolved work closely with the CBN leadership to ameliorate areas that require policy variation, particularly the poorest households, the vulnerable in society and several other citizens of our country that are excluded.'

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They also agreed to 'collaborate with the CBN and the Nigerian Financial Intelligence Unit (NFIU) in advancing genuine objectives within the confines of our laws, noting that the recent NFIU advisory and guidelines on cash transactions were simply outside the...