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NFIU sets new rules, denies Governors from accessing LG funds

The NFIU yesterday, disclosed that all LG allocations should go straight to the various bank accounts, and set a daily limit cash withdrawal of N500,000.

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Nigerian Financial Intelligence Unit

The newly inaugurated Nigerian Financial Intelligence Unit (NFIU), yesterday, banned banks, Governors,  public officers, and other financial institutions/stakeholders from tampering with the statutory allocations of Local Government Areas from the Federation Account.

This move is contained in a notice that was released by the NFIU, yesterday, about Local Governments’ financial guidelines.

Contents of the notice – The notice was titled: Guidelines To Reduce Vulnerabilities Created by Cash Withdrawals from LG Funds throughout Nigeria, Effective 1st June 2019. It is said to have been prompted by threats by the international financial watchdog to sanction Nigeria because of repeated financial abuse.

LGA allocations should go to their respective bank accounts –  The new law which is set to become effective from June 1st, 2019, states that all allocations to Local Government Areas should go straight to their respective bank accounts.

“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.”

A limited daily cash withdrawal – The agency set a daily limit cash withdrawal of N500,000 for all 774 local Governments in the country. Any transaction above this stipulated amount should be done via cheques/e-transfer.

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What this implies – This directive implies that each Local Government can now spend its funds judiciously without taking directives from Governors who have hijacked the monthly allocations of the third tier of government under the guise of State Joint Local Government Accounts.

Violation of the guidelines will not be tolerated – The NFIU warned that there will be consequences for violation of the guideline.

“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.

“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.”

This is in line with what the country expects from the NFIU – This move is in line wit what the Nigerian Government expects from the NFIU in terms of corruption.

Recall that Nairametrics had, last year, reported what the President expects from the agency after signing its bill into law.

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2 Comments

2 Comments

  1. wagun J. Butungkat

    May 15, 2019 at 9:28 am

    that is a good development, federal government under our able leader Buhari is worth commending. thumbs up..

  2. Anonymous

    October 27, 2020 at 10:58 am

    NFIU again? This Govt works by the pages of newspapers. A policy the Buhari Govt initiated since June last year is still on the pipeline. Weak Govt!!

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Coronavirus

COVID-19: FG to launch Rapid Response Register for urban poor

The FG has moved to inaugurate an emergency intervention database for the poor residing in urban centres and affected by the pandemic.

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Nigeria blows past 40,000 COVID-19 cases

The Federal Government has announced that it would inaugurate a COVID-19 Rapid Response Register (RRR), which would be a health emergency response for the poor living in urban centers that have been affected by the pandemic.

This was disclosed by Mr. Joe Abuku, Communications Manager, National Social Safety Nets Coordinating Office (NASSCO), on Sunday in Abuja.

Mr. Abuku said the register would identify Nigerians that have been made poorer due to the pandemic, targeting mainly Traders and SME Owners.

He added that the scheme was designed by the Ministry of Humanitarian Affairs, Disaster Management, and Social Development, through NASSCO, in partnership with the World Bank, and will be inaugurated by Vice President Yemi Osinbajo, on Tuesday, at Transcorp Hilton, Abuja.

What Joe Abuku is saying

  • “This register is being built by NASSCO as an expansion of the existing National Social Safety Nets Project (NASSP). It targets small business owners, street vendors, petty traders, Small and Medium Enterprises (SMEs), and service providers.
  • “Others are low wage employed individuals and families, including daily wage-based laborers, urban poor and destitute (persons with disabilities), and vulnerable families in slum areas, affected by the pandemic.
  • “The category of Nigerians who will be in this register is typically the urban/semi-urban poor engaged in the informal sectors of the economy, who lost their source of livelihood due to the impact of COVID-19 on businesses and jobs. The Federal Government plans to extend cash transfers to households in this register for a period of 12 months.”

He also stated that NASSCO would use geographical satellite sensing to locale the wards where the urban poor live, as the targeting of the poor would be done via cell phone Short Messaging Service (SMS) technology that allows residents of targeted communities register to be assisted by following simple steps using USSD codes.

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The SMS approach would be integrated through data gathered by the National Living Standard Survey Assessments and would be complemented by existing databases of Non-Governmental Organisations and local self-help-support groups.

  • “Mobile phone numbers of those deemed eligible for assistance will be linked to digitized bank accounts to receive cash support, under an expanded cash transfer program of the Federal Government. These cash payments are designed to boost consumption for these households, build their resilience, and in some cases, inject fresh capital into small businesses.”

What you should know

  • Nairametrics reported last year that the World Bank said the outbreak of the coronavirus pandemic could make an additional 5 million Nigerians poor.
  • The Poverty and Shared Prosperity Report 2020 by the World Bank Group indicate that between 88 million and 115 million people could fall back into extreme poverty as a result of the COVID-19 pandemic.
  • This is in addition to an increase between 23 million and 35 million in 2021, potentially bringing the total number of new people living in extreme poverty to between 110 million and 150 million.

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Coronavirus

Covid-19: Nigeria needs serious controls not a second lockdown – House Committee on Education

A member of the lower legislative house has advised the government to focus on serious control measures to help prevent the spread of COVID-19.

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Professor Julius Ihonvbere, Chairman, House Committee on Basic Education & Services, said the Federal and States governments should not impose a lockdown, but rather focus on serious control measures to help prevent the spread of the coronavirus.

He disclosed this during an interview with Channels TV on Sunday evening.

  • “I do not think we need a national lockdown now, I think what we need now is the first instance is serious controls. Let me say that the Governor of Lagos is the ‘poster man’ for the fight against covid-19. If we see you outside without a mask, we will arrest you and charge you to court, that is the kind of courage we need.”

He cited serious controls like buying hand sanitizers and washing materials to schools and urban areas in Lagos as part of the controls that should be commended.

  • “The issue is not a lockdown. If you lock people down, and you are not doing the right thing inside the lockdown, the cases will still increase. They (masses) will break it and will challenge it as they did during the first lockdown. So, the real issue is to bring out the policies and implement them.
  • “The Federal Ministry as a supervisor, yes states have the autonomy, but we give the state’s money from UBEC every year, we give them billions, what are they doing with it?

He urged that the FG should investigate what States use their Universal Basic Education Funds for, as Nigeria is in a time for “retooling and repurpose” and UBEC funding should be utilized in the fight against Covid-19.

What you should know 

  • Nairametrics reported last week that the Federal Government said Nigeria is not contemplating another lockdown and urged Nigerians to ignore social media posts circulating the possibility of another lockdown.

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Coronavirus

Covid-19: Ghana’s healthcare could be overwhelmed – President Akufo-Addo

Ghanaian President has warned that he might impose a partial lockdown as healthcare facilities are overwhelmed by growing cases of coronavirus.

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Africa: Ghanaian inflation rate drops for the 3rd straight month to 10.1%, Ghana’s cedi becomes investors’ best choice ahead Nigeria’s naira, Ghana restricts flights into country after detecting Coronavirus but Nigeria ignores measure

The Ghanaian Government has warned that Ghana’s second wave of the coronavirus pandemic is rising fast and could overwhelm its already extended Covid-19 treatment centres.

This was disclosed by President Nana Akufo-Addo on Sunday in a Reuters report.

The Ghanaian President warned that he might impose a partial lockdown in the coming weeks as cases might reach peak levels.

Active cases in Ghana climbed to 1,924 from about 900 since the 5th of January. He also confirmed that the new variant was present in the country, as cases were imported from people entering Ghana.

The President said,

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  • “Our COVID-19 treatment centres have gone from having zero patients to now being full because of the upsurge in infections. At this current rate, our healthcare infrastructure will be overwhelmed.
  • “Work is ongoing to determine the presence and extent of spread of the new variants in the general population.”

What you should know

  • Nairametrics reported that the Federal Government also alerted Nigerians that hospitals across the country were running out of facilities to handle more serious cases of coronavirus infections, as the virus is spreading fast with mild symptoms in some victims and severe illnesses and death in others.

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