According to a statement from the head of the Nigerian Financial Intelligence Unit (NFIU), Nigerian officials will no longer be permitted to withdraw money from government accounts as of March 1.
The government’s efforts to transition Africa’s most populous country toward a cashless economy are in line with the new regulations, which will apply to federal, local, and state officials and are intended to combat money laundering and corruption.
According to NFIU director and chief executive Modibbo R. HammanTukur, “Civil servants are becoming more and more vulnerable to money laundering and its predicate crimes due to their exposure to cash withdrawals from public accounts.”
According to NFIU analysis, officials withdrew nearly 1.1 trillion naira ($2.45 billion) from government accounts between 2015 and 2022, most of it exceeding previous records. Last month, Nigeria’s central bank began circulating newly designed 200, 500 and 1,000 naira notes and limited weekly cash withdrawals in order to curb inflation and move towards a cashless economy.