Finally, NFIU Monitors Revenue
Finally, NFIU Monitors Revenue Allocations to Local
Governments
The Nigeria Financial Intelligence Unit (NFIU) requests all
financial institutions, other relevant stakeholders, public
servants and the entire citizenry to ensure full compliance with
the provisions of the guidelines already submitted to Financial
institutions and relevant enforcement agencies including full
enforcement of corresponding sanctions against violations from 1st
June, 2019.
Having realized through analysis that cash withdrawal and
transactions of the State, Joint Local Government Accounts (SJLGA),
poses biggest corruption, money laundering and security threats at
the grassroots levels and to the entire financial system and the
country as a whole, decided to uphold the full provisions of
section 162 (6) (8)of the 1999 Nigerian Constitution as amended
which designated “State Joint Local Government Account into which
shall be paid allocations to the local government councils of the
state from the federation account and from the government of the
state”
“The amount standing to the credit of local government councils
of a state shall be distributed among the local government councils
of that state” and not for other purposes.
As far as the NFIU is concerned the responsibility of the
account as a collection account is fully reinstated.
In addition, taking such measures was necessitated by prompting
reasons on the NFIU to respond to threats of isolating the entire
Nigerian financial system by other International financial systems
because of deficiencies in our anti money laundering and counter
terrorism financing implementation.
Therefore, it is no longer possible to allow the entire system
to suffer the deliberate and expensive infractions or violations by
public officials and/or private business interests.
Henceforth, all erring individuals and companies will be allowed to
face direct international and local targeted sanctions, in order
not to allow any negative consequences to fall on the entire
country.
To be precise, with effect from 1st June any bank that allows
any transaction from any local government account without monies
first reaching a particular local government account will be
sanctioned 100%, both locally and internationally.
In addition, a provision is also made to the effect that there
shall be no cash withdrawal from any local government for a
CUMULATIVE AMOUNT exceeding N500,000:00 per day. Any other
transaction must be done through valid cheques or electronic funds
transfer.
The complete guidelines has been released to the Governor of the
Central Bank of Nigeria, the Chairman, Economic and Financial
Crimes Commission (EFCC), the Chairman, Independent Corrupt
Practices Commission (ICPC) and Chief Executive Officers of all
Banks and other financial institutions.
Any state government that is willing to seek any expert economic
advice in the unlikely event of these guidelines constituting an
inconvenience to the management of the state can work with the NFIU
and /or CBN.
Ahmed Dikko
Ag. Chief Media Analyst
NFIU