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All Govt Payments Must Be Cashless From March — NFIU
The Federal Government yesterday served a notice to the three tiers of government that all payments from the public treasury beyond the threshold approved for daily cash limit by the Central Bank of Nigeria must be done electronically with effect from March 1, 2023.
In effect, the Nigerian Financial and Intelligence Unit, NFIU, which made the announcement, warned that anyone who flouts the new guideline would be charged in accordance with relevant instruments on money laundering and corruption operating in the country.
The notice generated mixed reactions from some state governments. While some saw it as necessary, others kicked against it.
However, the Director of NFIU and Chief Executive Officer, Mr Modibbo Hamman Tukur, who made the pronouncements at a briefing in Abuja, warned that with the publication of the new guidelines, cash withdrawals from public accounts had been prohibited by the requirement of the laws under reference, while the payment of estacodes and overseas allowances to civil and public servants in cash had also been outlawed.
Sanctions and penalties
The NFIU boss also warned that any public office at the federal, state and local government levels, who flout the new cash policy, would face the full weight of the law, irrespective of his/her position.
The NFIU said: “It is hereby stated clearly that any individual or corporate body who violates the provisions of these guidelines is in direct contravention of provisions of Section 2 of MLPPA, 2022, Section 13 of MLPPA, 2022, NFIU Act, 2018 and Section 26 of POCA, 2022, and their attendant principles and interpretations and will be liable to necessary prosecution and penalties from the effective said date. Cash withdrawals from public accounts would be treated as a money laundering offence.
“Also, it is hereby provided that any public officer or any citizen who comes into contact with the provisions of these Guidelines with its attendant principles shall as a matter of obligation promote the implementation and success of the guidelines.
Take-off date
“The effective date for the enforcement and/or implementation of this guideline by all public authorities, institutions and organizations in the financial sector, financial institutions and designated non-financial institutions is March 1, 2023.”
Exceptions
The NFIU, however, gave one condition under which a public officer might be allowed to withdraw more cash than is allowed under the law, saying only the Presidency could provide such a window.
According to Tukur, the waiver to withdraw more daily cash than approved by the CBN, can be granted by the Presidency, based on exigency.
He explained: “There is nothing in these guidelines to suggest or indicate there is reason to compel or warrant a public official at federal, state and local government to go to a financial institution to withdraw cash. In the unlikely event that a public official feels he may need cash withdrawal, he may apply for approval for a waiver from the Presidency which may be granted on a case-by-case basis.
“Under no circumstance, shall any category of public officers be given a standing or continuous waiver to withdraw cash from any public account in any financial institution or designated non-financial institution.
“The application of these guidelines includes all foreign missions operating in Nigeria, accounts of all development partner institutions, and the accounts of all instituted funds in form of independent funds to be operated as mutual funds such as insurance funds, cooperative funds, brokerages funds, political party funds or pressure group/union funds, once the funds are designated to exist as funds or to operate independently for management and/or investment.
“By these guidelines, the local government’s N500,000 cash withdrawal limit with regards to public accounts and instituted funds are hereby discontinued. These guidelines supersede and repeal the N500,000 cash withdrawal limit of local government funds and also, since it is for criminal purposes, supersedes the CBN’s regulation on cash withdrawal limit with regards to public accounts and instituted funds”.
Why the guidelines became imperative
The NFIU explained that the application of the new measures became necessary to enable Nigeria to comply with the Enforcement, Guidelines and Policies for the Mitigation of Money Laundering, Terrorist Financing, Proliferation of Weapons and Prevention of Predicate Crimes.
Tukur said: “In considering the provisions and enforcement requirements of the law, particularly Sections 2 and 13 of the MLPPA, 2022, Section 26 of the Proceeds of Crime (Recovery and Management) Act, (POCA) 2022, and the Central Bank of Nigeria (CBN) circular on the revised cash withdrawal limits, issued pursuant to its powers under the CBN Act, 2007, and Banks and Other Financial Institutions Act, 2020, the NFIU noticed in the process of its financial transactions analysis that civil servants are becoming more and more vulnerable to money laundering and its predicate offences due to their exposure to cash withdrawals from public accounts.
“Although this guideline is meant to enforce the provisions of Sections 2 and 13 of MLPPA, 2022, to discontinue cash withdrawal from public accounts and establish a clear audit trail, and mitigate corruption and other vices in public expenditure; it is also aimed at supporting law enforcement and the entire criminal justice system by strengthening transparency in the investigation.
“According to NFIU analysis covering the period 2015 to 2022, the Federal Government withdrew N225.72 billion cash; state governments, N701.54 billion cash; and local governments, N156.76 billion cash.
“The cash withdrawals directly contravene the provisions of the MLPPA, 2022 and the Proceeds of Crime (Recovery and Management) Act, 2022 (POCA, 2022) which provide the legal framework setting limitations on cash transactions and sanctions for infringement of the provisions.
“Section 2 of the MLPPA, 2022 restricts cash payments of a sum exceeding N5 million (or its equivalent) for individuals, and N10 million or its equivalent for a body corporate. Section 19 of the MLPPA, 2022 imposes a fine of at least N10 Million or imprisonment for a term of at least three years (or both), in the case of individuals; and a fine of N25 million in the case of a body corporate. Section 26 of POCA, 2022 makes provision for the seizure and detention of cash over the prescribed amount under the law.
“Most cash withdrawals from public accounts are in excess of N5 million and N10 million respectively which is prohibited and liable to imprisonment upon conviction.
‘’The breach of this particular provision became so rampant because there are heavy withdrawals of cash from public accounts necessitated by inflation and changes in the economy, and also due to payment for overseas travels in terms of estacode and other overseas allowances.
“By the principles of Section 2 (Cash Transaction Outside Financial Institutions Limit), and Section 13 (Use of New Products, Business Practices and New Technologies) of the MLPPA, 2022, cash withdrawals must be prohibited in order to mitigate the risk of exposure of public servants to these crimes and protect the financial system from continuous abuse.
“In the meantime, this is not only indicting chief accounting officers of Ministries Departments and Agencies (MDAs) but in the context of Nigeria’s democracy, it gives room for adversaries, political opponents and antagonists to exploit the law against their competitors, or to their individual political advantage.
“Considering the provisions of Section 13 of the MLPPA, 2022, which depicts that in the light of the vulnerability stated above and risk, there must be a redesign of products and technologies to respond to new circumstances and developments which directly apply in this particular case, for the protection of the innocent public servants against terms of imprisonment. Convictions on account of Section 2 of MLPPA, 2022 were becoming frequent in the law courts.
“Sections 3(1)(e), (n), and (l) as well as 23(2)(a) of the NFIU Act empowers the Unit to respond in line with our primary duty and issue guidelines, advise, monitor and report compliance on this to law enforcement and prosecutorial authorities. We support the CBN circular on cash withdrawal limit which is in harmony with the law, provided in Section 2 of MLPPA, 2022. This guideline will support the efforts of the CBN.
No big deal about the cashless transaction —Lagos govt
Reacting to the notice yesterday, the Lagos State government described the planned introduction of a cashless policy as a welcome development, saying the state had always been implementing the policy.
The Commissioner for Information and Strategy, Gbenga Omotoso, said: “Lagos State government has always been in support of the cashless policy.
“It’s not a new thing to us because we have always been on a cashless policy from inception. Not a big deal to us in Lagos.”
We’ll embrace any developmental policy, says Adeleke’s spokesman
When contacted, Governor Ademola Adeleke of Osun State, who spoke through his spokesperson, Mr Olawale Rasheed, said the young administration in the state is willing to embrace any policy that will enhance the growth and development of its people.
He added that the new government had plans to invest in technology innovation to ensure ease of doing business,, hence it would not shy away from embracing the policy if it aids it agenda.
His words: “Well, ours is a young administration and we are still studying the details of the policy. However, we have plans for technology innovation and, in the interest of the development of our people; we are willing to embrace any policy that will enhance the quality of life of our people. If this policy will enhance business and investment in the state, we will be part of it.”
Bayelsa govt faults policy
On his part, Bayelsa State deputy governor, Senator Lawrence Ewhrudjakpo, faulted the monetary policy of the Central Bank of Nigeria on daily cash withdrawal limits, noting with concern that the policy would not favour predominantly rural states as Bayelsa because of the absence of banking services in the rural areas.
His words: “The current monetary policy is not in favour of those of us who are more of a rural state, as Bayelsa. This policy will not do well for us for now. So, we pray the Federal Government to reverse the policy and encourage the free flow of cash in order not to further stifle our fragile economy.”
A human rights lawyer and lead counsel for the Indigenous People of Biafra, Sir Ifeanyi Ejiofor, has urged South-East residents to completely ignore what he described as a “fraudulent” sit-at-home order allegedly scheduled for Monday, February 2, 2026, by a faction of the group.
Recall that the pro-Biafran group, through its spokesman Emma Powerful, had directed a sit-at-home on February 2 across the region in solidarity with traders at the Onitsha Main Market.
Powerful said the total shutdown in Biafraland is a direct, peaceful, and unified response to the actions of Anambra State Governor, Prof. Chukwuma Soludo, who ordered the closure of the Onitsha Main Market for one week.
But in a counter statement released on Saturday, Ejiofor said the source behind the directive, operating under the guise of “Emma Powerful,” has been compromised and is acting against the collective interest of Ndi-Igbo.
He insisted that IPOB has formally and decisively distanced itself from the false sit-at-home order and directed Ndi-Igbo to go about their lawful activities without fear.
The statement read in part: “Once again, the well-worn theatre of misinformation has opened its curtains, this time with a particularly lazy script and an insultingly predictable cast.
“Late yesterday, a report was widely circulated alleging that a total lockdown of Ala-Igbo had been ordered under the guise of a sit-at-home directive purportedly issued by ‘Emma Powerful,’ slated for Monday, February 2, 2026.
“Let it be stated clearly, unequivocally, and without ambiguity: this directive is fake, a phantom, a calculated falsehood.
“Upon careful inquiry and diligent verification, especially considering the delicate and hard-won calm presently returning to our homeland, it became glaringly obvious that the so-called ‘Emma Powerful’ platform has been fatally compromised.
“It has been hijacked by vested interests whose business model thrives on fear, disruption, extortion, and the cynical exploitation of vulnerable communities.
“The peaceful global movement of the IPOB has formally and decisively disowned this fabricated publication, categorically distancing itself from the false sit-at-home order and directing Ndi-Igbo to go about their lawful and normal activities without fear.
“Going forward, the message from IPOB is unmistakable: any publication attributed to ‘Emma Powerful’ should be treated with extreme suspicion, if not outright contempt.
“Frankly, one cannot but express astonishment, bordering on disbelief, that at such a critical juncture, when relative peace is cautiously resurfacing in Ala-Igbo, anyone would recklessly circulate information capable of reopening wounds and inviting criminal infiltration.
“History has taught us, at unbearable cost, what happens when fake directives fall into the hands of violent opportunists masquerading as enforcers.
“It is therefore no longer sufficient to merely advise our people to ‘ignore’ publications from this source. The time has come for greater clarity and firmness. The platform known as ‘Emma Powerful,’ in its current corrupted state, has positioned itself as an adversary to Ala-Igbo’s peace, progress, and collective well-being.”
According to Ejiofor, the peaceful global movement must go further by publicly and definitively explaining why this source has become unreliable, compromised, and hostile to the collective interest of Ndi-Igbo. Silence, ambiguity, or polite distancing, he said, only leaves room for further abuse.
“A masquerade that dances with fire should not be mistaken for a messenger of truth,” the statement concluded.
In recent operations across the North East, troops of the Joint Task Force Operation HADIN KAI (OPHK) have neutralized scores of terrorists and recovered a significant cache of arms and ammunition.
Lieutenant Colonel Sani Uba, Media Information Officer, Headquarters Joint Task Force (North East) in a statement said intelligence has confirmed the killing of JULAIBIB, a top ISWAP commander operating within the Gujba axis of the Timbuktu Triangle, during an encounter around Kimba, Damboa LGA of Borno State, on 30 January 2026.
According to the statement, the elimination of the terrorist leader has thrown ISWAP elements in the area into disarray, with several fighters reportedly neutralised during the operation.
In a related operation, troops of OPHK, working in collaboration with the Civilian Joint Task Force, neutralised 3 terrorists during a well-coordinated ambush between Ngazalgana and Lamusheri communities in Borno State.
It said the operation followed credible intelligence on insurgent movements in the area, as troops laid an ambush along the identified route and engaged the terrorists with effective firepower, resulting in the neutralisation of 3 insurgents, while others fled with gunshot injuries.
The statement said troops recovered two AK-47, adding that the operation forms part of sustained efforts to deny terrorists freedom of movement and degrade their operational capabilities across the Theatre.
It said troops also recorded multiple successes in Adamawa State, adding that on 29 January, 2026, troops responded swiftly to a distress call from Barama community, Mubi North LGA, foiling an armed robbery attempt. Two armed robbery suspects attempting to attack a student of the Federal Polytechnic, Mubi, were arrested. One suspect sustained a gunshot wound to the thigh while attempting to confront the troops and was evacuated to the Federal Medical Centre, Mubi, for treatment.
The suspects were subsequently handed over to the Nigeria Police for further investigation. Items recovered include 3 cutlasses, 2 laptops, 4 mobile phones, and one power bank.
The Court of Appeal sitting in Ilorin, Kwara State has affirmed the death sentences passed on five 2018 Offa robbery convicts.
The court dismissed their appeals as lacking merit.
The Director of Public Prosecution (DPP) in the state, Mohammed Akande, who witnessed the proceedings, said that the three Appeal Court judges unanimously agreed on the judgement and affirmed the verdict of the state High Court condemning the five persons to death by hanging.
“The Court of Appeal, Ilorin Division comprising of Hon. Justice Ridwan Maiwada Abdullahi JCA, Hon. Justice Gabriel Kolawole JCA and Hon. Justice Abdul Dogo today, Friday affirmed the judgment of Hon. Justice H. A. Saleeman of the Kwara State High Court, that sentenced the Appellants: Niyi Ogundiran, Salawu Azeez, Ibikunle Ogunleye, Ayoade Akinnibosun and Adeola Abraham to death by hanging for the involvement in the Offa Bank Robbery”.
Another official of the Court also said that the appellate court rejected all the grounds of appeal filed by the convicts and ordered their immediate return to prison custody.
“The court dismissed all their grounds of appeal and upheld their convictions. They have been taken back to prison,” the official said.
The official said that the arguments raised at the Court of Appeal were unconvincing and may not succeed if repeated at the apex court.
It is recalled that Ayoade Akinnibosun, Azeez Salahudeen, Niyi Ogundiran, Ibikunle Ogunleye and Adeola Abraham were convicted of armed robbery, illegal possession of firearms and culpable homicide.
A sixth suspect, Michael Adikwu, a retired police officer, died in custody before the commencement of the trial.
At least 32 people were killed, including nine police officers, two of whom were women, making it one of the deadliest bank robberies in Nigeria’s history.
Justice Haleemah Saleeman of the Kwara State High Court had earlier sentenced the five convicts to death by hanging after a trial that lasted about six years and attracted nationwide attention.
In her judgment, which lasted over four hours, Justice Salman held that the prosecution proved its case beyond reasonable doubt.
She said the convicts “acted contrary to the law and allowed their connections with those in power at the time to lead them astray”.
In addition to the death sentence, the trial court also sentenced them to three years’ imprisonment for illegal possession of firearms, in line with provisions of Nigeria’s penal laws.
Lead prosecution counsel, Rotimi Jacobs (SAN), described the appellate court’s decision as thorough and well considered, despite the prolonged delays that characterised the trial.
On the defence side, Abdullah Jimba, counsel to one of the convicts, said that preparations were underway to pursue a final appeal at the Supreme Court.
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