State governors may lose control
of local government funds if the new guidelines of the Nigerian Financial
Intelligence Unit (NFIU) become effective.
The guidelines would make the
joint account system currently in use only exist for the receipt of allocations
from the federation account but not for disbursement.
The new measures, it was learnt,
were introduced by the current administration to restore LGA’s financial
autonomy.
This comes less than a year after
President Muhammadu Buhari signed the NFIU bill into law, thus separating the
agency from the Economic and Financial Crimes Commission (EFCC).
The new guidelines, according to
sources, were introduced to check treasury looting by local government
officials as well as alleged diversion of LGA funds by governors.
The new measures would place a
daily cash transaction limit of N500,000 for each of the LGAs, while these
would be registered and monitored by the NFIU through e-payment module.
A source privy to the development
said Modibbo Hamman-Tukur, NFIU director, will on Monday lunch the
comprehensive guidelines which also target government, corporate and individual
financial transactions.
“Governors will also lack control
over the utilisation of these funds of local governments,” the source said,
adding: “The joint account system in some states will only exist for the
receipt of federal allocations meant for local governments and not
disbursement.”
In a statement, Ahmed Dikko, NFIU
acting spokesman, said the agency is committed to fighting money laundering,
terrorism financing and proliferation of weapons.
The statement read: “Significant
measures to be implemented by the NFIU in the near future will include full
implementation of the National Sanctions regime to all detected areas of
vulnerabilities within our systems. Other areas include issuing guidelines,
advisories etc. that will affect cash transactions processes of local, state,
federal governments and bureau de change etc.
“The Unit will also release new
reporting requirements on suspicious transactions for terrorism prone areas and
on suspects taken into custody in violent and flashpoint communities to check
vices of terrorism, proliferation of small arms, kidnapping, ethnic violence,
cattle rustlings etc. with the view to providing credible intelligence for law
enforcement and national security.
“Finally, efforts of the Federal
Government to set up the beneficial ownership data base for politically exposed
persons and public servants will be completed and expanded to capture
additional necessary areas.”
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