NFIU Set To Monitor Revenue Allocations To Local Governments

BY AMOS DUNIA, ABUJA – Following the realization through analysis that cash withdrawal and transactions of the State, Joint Local Government Accounts (SJLGA), poses biggest corruption in the country, the Nigeria Financial Intelligence Unit (NFIU), said it would commence the full enforcement of corresponding sanctions against violations with the provisions of the guidelines already submitted to Financial institutions and relevant enforcement agencies from June 1, 2019.

The NFIU also noted that the SJLGA also constitute one of the major money laundering and security threats at the grassroots levels and to the entire financial system and the country as a whole. In this wise, the NFIU said it has 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.”
Accordingly, the NFIU has requested all financial institutions, relevant stakeholders, public servants and the citizenry to ensure full compliance.
It said 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. 
These were contained in a statement by the Acting. Chief Media Analyst of the NFIU, Mr. Ahmed Dikko, who further said that as far as the NFIU is concerned, the responsibility of the account as a collection account is fully reinstated. 
According to Dikko; “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.” 
The NFIU warned that 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. 
It therefore declared that 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. 
Dikko also said that 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. 
He said 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. 
The NFIU said; “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.”