By Adedapo Adesanya, Dipo Olowookere
Two Senior Advocates of Nigeria (SANs), Mr Jibrin Okutepa and Mr Paul Ananaba, have expressed different opinions on the recent ban on cash withdrawals from government accounts by the Nigerian Financial Intelligence Unit (NFIU).
While speaking on the flagship breakfast show on Channels Television, Sunrise Daily, monitored by Business Post on Friday, Mr Okutepa said he supports the ban because it would help in tracking government spending.
However, in his opinion, Mr Ananaba argued that the NFIU does not have the power to restrict the state and local governments from having access to their funds, either through cashless or otherwise.
“The NFIU does not have the powers to enforce such except it works with other agencies; standing alone, NFIU ought not to have made that statement; it should have been a joint statement [with other agencies like the EFCC, CBN],” the legal luminary said.
On Thursday, while addressing reporters, the chief executive of NFIU, Mr Moddibo Tukur, explained that from March 1, 2023, the new policy would become effective, noting that it was to curb the rate at which monies were withdrawn from public accounts in total disregard to the money laundering laws, and also to reduce corruption in public service.
He warned that any government official that withdraws cash from public accounts would risk investigation by the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), and the Nigeria Police Force, in collaboration with the NFIU.
“The NFIU had told banks and government agencies at all levels to go fully digital by moving online, as all transactions involving public money must be routed through the banks for the purpose of accountability and transparency.
“This is not reversible as we are only enforcing the law. As far as we are concerned, Nigeria will become a full non-cash economy by March 1, 2023, this year.
“As a consequence, any government official that withdraws even one naira cash from any public account from March 1 will be investigated and prosecuted in collaboration with relevant agencies like the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices Commission (ICPC) and Nigeria Police Force (NPF),” he declared.
Mr Okutepa, while commenting, said the organisation has the power to carry out this function.
“I support the position and enforcement of the provisions of the Act that set them up in order to prevent money laundering.
“I agree that no government officials should be allowed, including Governors, Ministers, presidential aides, the President himself should not be allowed to withdraw huge amounts of money,” the legal practitioner submitted.
Mr Okutepa noted that if this policy is religiously enforced, it will curb corruption, especially funds withdrawn by state governors through security votes.
“For instance, you talk about this particular thing called security votes; there is a lot of money being withdrawn under the guise of security votes, and yet, we are in a state where [we have serious security threats], and people are afraid to go to their villages,” he said.
“My fear about this law is not the intention but the ability to follow through.
“From the point of law, looking at the provisions of the law that set up the NFIU, particularly Section 1 that talked about its aims and objectives, Section 2 that created the act and Section 3 that set out the functions, [it has the power to carry out this policy].
But Mr Ananaba said, putting sentiment aside, the NFIU cannot enforce the policy alone because it has limited powers to do so.
“You want to go cashless, but does NFIU have the capacity or guarantee that the country has the technology for a totally cashless society from March 1?” he queried.
“I would have expected that the CBN and other financial institutions would be part of a coalition that will bring this to pass,” he submitted.
Speaking further, he asked, “On what basis will the NFIU give directives to states? What happens when things go wrong [and the states challenge or go against the policy]?”
“My point is that NFIU cannot go outside the laws setting it up in 20218; it does not give it the powers to regulate cash withdraw,” he emphasised
