The Nigerian Financial Intelligence Unit (NFIU) has said the federal government is planning to stop cash withdrawals from all federal, states and local government accounts.

The Director and Chief Executive Officer of NFIU, Modibbo Tukur, disclosed this in a statement signed by the unit’s chief media analyst, Ahmed Dikko.

Tukur said most cash withdrawals from government accounts — including payments for estacode — are often in excess of the cash withdrawal limit provided by the money laundering act.

According to the statement, due to the consistent devaluation of the naira and the introduction of a new naira policy, section one of the money laundering prohibition act is automatically activated”.

It further said this puts public servants at risk of imprisonment.

In addition, Tukur said the NFIU has already prepared recommendations to the secretary to the government of the federation; all governors; and local council chairs, directing all civil servants to open domiciliary and naira accounts prior to the commencement of the policy.

He however refuted reports that the NFIU will block federal government accounts in January 2023.