Local Govt Funds: Again, NFIU warns financial institutions, public officials

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Local Govt  Funds: Again, NFIU warns financial institutions, public officials  

The Nigerian Financial Intelligence Unit (NFIU)  has once again reiterated its position on local government funds as it warned financial institution to stick to the 1st June 2019 deadline  set by the agency for  compliance with guidelines.

A statement signed by  Mr Ahmed Dikko ,chief media analyst of NFIU  on Wednesday warned that financial  institution which breaches  the guidelines on local government funds will be sanctioned.

In a press release titled: “NFIU Maintains Stand On Local Government Funds” the agency said: “The Nigerian Financial Intelligence Unit (NFIU) is using this second press statement on the above subject to reiterate its position that the 1st June effective date of the guidelines to all financial institutions and public officials on the local government funds stands. 

“The Unit also maintains its understanding of the 1999 constitution that no debit is allowed on any local government  funds unless and until the funds are credited to and reached  the bank accounts of a local government in any  state of the federation. 

The agency said , “The provision of the cumulative cash withdrawal not exceeding N500,000 per day is also firmly in place effective 1st June 2019. 

 “We observed isolated comments to the contrary in the past few days which in our assessment only amounted to willful misinterpretation of the 1999 constitution and therefore, of no consequences to the operations of the entire financial system.  

“The provision of the guidelines to the financial institutions was also on account of legitimate powers provided by the NFIU Act 2018 and any violations of the said guidelines will be sanctioned appropriately.”

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