The Executive Director of Nigeria Network of NGOs (NNNGO), Oluseyi Oyebisi, has called on civil society organisations (CSOs) to ensure proper monitoring of the implementation of the cash withdrawal ban placed on government spendings by the Nigeria Financial Intelligence Unit (NFIU).
Development Diaries reports that the NFIU, on 05 January, 2023, announced a ban on cash withdrawals from accounts belonging to the federal government, its agencies, and also state and local governments.
According to the agency, the ban, to take effect on 01 March, 2023, is necessary to curb the rate of money withdrawals from public accounts.
Speaking with Development Diaries, Oyebisi said CSOs can also raise awareness of the need for less use of cash in government transactions.
The NNNGO boss, who described the action as a welcome development, however said it needs to be properly enforced.
‘I think it’s a welcome development that you can be able to track all spending because the moment spending goes outside of an electronic system, it is difficult for you to track’, he said.
‘However, the policy needs to be properly implemented, because it would mean that for some activities that would require petty cash, they have to find systems for managing them properly.
‘For some government activities that would require the need for a cash transfer system; for instance, where you give cash support to the vulnerable to be able to feed, like the N5,000 and 10,000 being given to the elderly, how do you ensure that is properly implemented, understanding that not all Nigerians are banked’?
He added, ‘But, again, in terms of government transactions, if that is done, such that cash is limited to the barest minimum and in ways that are tracked, I think it’s a good development for money laundering and countering of terrorism financing and also including curbing corruption’.
Noting that the media can check the progress of its implementation, Oyebisi highlighted ways CSOs can monitor the progress of the policy.
‘I think the best for civil societies is also at some point to join the media in checking how it has been implemented, so like a kind of process evaluation of that directive, how many ministries are implementing it and how are they implementing it effectively’, he said.
‘But you know this will then have to mean that you are getting into the nitty-gritty of the transactions of each ministry, from how they raise their invoices, their procurement, and also until final payment, tracking it up until who received that payment, is it the right vendor and all that.
‘It is one work that would require very detailed analysis and also research but it is possible.
‘The other part is for CSOs to raise awareness on the need for there to be less use of cash in government transactions. So, overall, it is a good idea and we must find ways of ensuring that it works’.
He noted that given the power and capacity of the NFIU, the agency should be able to ensure proper implementation of the directive.
Photo source: Oyebisi Babatunde Oluseyi
