Governors may lose control of local government funds from the Federation Account, going by the new Nigerian Financial Intelligence Unit (NFIU) guidelines.

The Joint Account System in place in most states will only exist for the receipt of allocations but not disbursement, according to the guidelines.

Besides, each of the 774 local government areas may get N500,000 cash transactions limit per day.

All financial transactions by local governments will be registered and monitored by the NFIU through e-payment module.
These are some of the highlights of the new guidelines, which the NFIU will launch today in Abuja as part of steps to check mass looting of the treasury by local government officials and diversion of LGA funds by governors.

It was learnt that the administration of President Muhammadu Buhari floated the idea to restore the financial independence of local governments.

A top source, who spoke in confidence, said the new Director of NFIU, Mr. Modibbo Hamman-Tukur is set to roll out the comprehensive guidelines which will cover government, corporate, Bureau De Change and individual financial transactions.

The source said: “The NFIU will on Monday launch new financial guidelines, including those bordering on the operations of the local government accounts.

“The guidelines will limit cash transactions in the accounts of local governments and promote registered transactions by all the local governments.

“Governors will also lack control over the utilization of these funds of local governments.

“The Joint Account System in some states will only exist for the receipt of federal allocations meant for local governments and not disbursement.”

Another source said: “The administration of President Muhammadu Buhari is taking his anti- corruption campaign to a higher level by also blocking sources of stealing in government at all levels, money laundering, terrorism financing and others.
“We should expect more transparency in governance, especially at the third tier, which is the local government level.”

President Buhari on July 11, 2018 signed the NFIU Bill into law – in line with the requirements of Recommendation 29 of the Financial Action Task Force Standards and Article 14 of the United Nations Convention Against Corruption.

The new Act has separated the NFIU from the Economic and Financial Crimes Commission (EFCC).

The NFIU began operations on April 1.

A statement by the NFIU through its Acting Chief Media Analyst, Mr. Ahmed Dikko, said it will soon complete the beneficial ownership data base for politically exposed persons.

The statement said: “”The main focus of the NFIU will be to fight all crimes through money laundering, terrorism financing and proliferation of weapons real time analyses in the entire country.

“Significant measures to be implemented by the NFIU in the near future will include full implementation of the National Sanctions regime to all detected areas of vulnerabilities within our systems. Other areas include issuing guidelines, advisories etc. that will affect cash transactions processes of local, state, federal governments and bureau de change etc.

“The Unit will also release new reporting requirements on suspicious transactions for terrorism prone areas and on suspects taken into custody in violent and flashpoint communities to check vices of terrorism, proliferation of small arms, kidnapping, ethnic violence, cattle rustlings etc. with the view to providing credible intelligence for law enforcement and national security.

“Finally, efforts of the Federal Government to set up the beneficial ownership data base for politically exposed persons and public servants will be completed and expanded to capture additional necessary areas.

“The new process which includes new approach to analysing compliance in public account expenditures will almost shut down corruption from the way we used to know and new transparency methods will come to governance.”

https://thenationonlineng.net/nfiu-governors-may-lose-control-of-local-government-funds/

Arguably one of the best thing that would happen to LGAs in Nigeria.

Nice one. This is a tactical approach in dealing with corrupt institutions.

Buhari just busy trying to save the common masses from the hands of the greedy few who have sworn to make things difficult for everybody. Even though those that are used to looted funds and their relations of PDP extraction are not happy for the progress, but Who cares?

The way States government just take put LGC under their ampit baffles me honestly, there are projects meant to be done by LGC but due to lack of fund from state government , the LGC can't and it has rendered the LGC unproductive and useless . This proposed new system will give us fresh breath kind of, to enabling us feel little impact of State and LGC . Those LGC chairmen are crooks too with embezzlement but this will put them into check if implemented. A lot of streets in the cities are dirty and untidy .

Comment on how good smart n intelligent this policy is and also compliment the dullard that instituted and signed it into law.

Do not let hypocrisy of foolishness kill your souls, compliment the person “Buhari” doing all this for a beta Nigeria. Basics like this are what PDP failed to do in 16 years that ruined Nigeria to the extent it is now.

If Nigerians are killed in far away South Africa or Malaysia Buhari will be blamed but you lot can’t give him kudo for this after your foolish governors tactically refused local governments autonomy by making sure state assembly do not pass the legislation into law.

dalongjnr:
Nice one. This is a tactical approach in dealing with corrupt institutions.

genieplus86:
Arguably one of the best thing that would happen to LGAs in Nigeria.

dalongjnr:
Nice one. This is a tactical approach in dealing with corrupt institutions.

juvewalex:
The way States government just take put LGC under their ampit baffles me honestly, there are projects meant to be done by LGC but due to lack of fund from state government , the LGC can't and it has rendered the LGC unproductive and useless . This proposed new system will give us fresh breath kind of, to enabling us feel little impact of State and LGC . Those LGC chairmen are crooks too with embezzlement but this will put them into check if implemented. A lot of streets in the cities are dirty and untidy .

Very long overdue. Governors don't see any difference between state and LG funds