The Association of Local Governments of Nigeria has hailed the Nigeria Financial Intelligence Unit for prohibiting cash withdrawals from accounts belonging to the federal, states and local governments.

The association said the policy, if adequately enforced, would reduce corruption by 50 per cent.

Speaking in an interview with Saturday PUNCH, the Secretary, ALGON Board of Trustees, Chukwudi Ezinwa, said prohibiting withdrawal of cash in government accounts would drive development in the country.

According to him, the new policy is a welcome development that will help to check the spending of public funds.

He said, “What NFIU has done is a welcome development as far as I am concerned. This is so because any cash that is disbursed into account of local governments is supposed to be used for the purpose it is meant for.

Related News

“No level of government should deal with cash, especially now that we are talking of going cashless. Think of it, if governments don’t pay salaries in cash, I don’t see why government expenditures should be done in cash.

Speaking further, the former chairman, Ezeagu Local Government Area of Enugu State, said, “It will lead to the development of this country because funds will now be used for what it is provided for.

“When a local government chairman or state governor says he has spent a particular amount on a project, he would have paid the contractor through an account and not cash. If anything happens along the line, the fund will be traced to the contractor who received the payment. And if he (contractor) is unable to present the project, then he will have to refund the money to the account.

“Through this, people will not be able to steal public funds through the withdrawal of cash. The only lapse is that it will not check when a project has been over-estimated. But definitely, the project will have its value.

“Now, it will be different from when you say N40m was disbursed to a particular state or local government and you cannot trace it anywhere. You will have to see the project because since payment has now been mandated to be made through transfer, it will be traceable to somebody.”

By Vision

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: