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NFIU insists on June 1st date for commencement of LG financial autonomy
THE National Financial Intelligence Unit (NFIU) has reiterated that the June 1 date for the commencement of the new guideline with regards to local government funds remains sacrosanct.
This was contained in a statement issued by Ahmed Dikko, NFIU’s acting spokesperson on Wednesday, the second of such statements in one week.
“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 statement read.
“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 reach the bank accounts of a local government in any state of the federation.
“The provision of the cumulative cash withdrawal not exceeding N500,000 per day is also firmly in place effective 1st June 2019.”
Dikko said the NFIU would not hesitate to sanction any financial institution that violates the new guidelines once.
The new NFIU guidelines, when it takes full effect, would ensure that local governments get their allocations directly into their bank accounts, unlike the current practice where state governments run a joint account with the LGAs which is directly controlled by the state governors.
The joint state and local government account system will only exist for the receipt of allocations from the federation account but not for disbursement, according to the new guidelines.