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State Governors Open Security Vote Accounts With CBN - Politics - Nairaland

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State Governors Open Security Vote Accounts With CBN by ManirBK: 9:11am On Nov 20, 2023
Governors will henceforth draw their security votes from the Central Bank of Nigeria (CBN).

The development followed the agreement reached earlier in the year between the 36 governors and the Nigerian Financial Intelligence Unit (NFIU).


With the agreement, the governments in the states were mandated to open dedicated accounts for their governors’ security votes with the apex bank.

The opening of such accounts will enable the NFIU to monitor cash withdrawals for security purposes by the governors.

Prior to the NFIU January 5, 2023 directive, banning cash withdrawals from public accounts, governors were getting their security votes from the monthly subventions from Federal Accounts Allocation Committees (FAAC).

But, the states were forced to steer away from commercial bank channels by the NFIU.

A source at the NFIU told The Nation: “Under this arrangement, states governments have established accounts with the CBN specifically designated for their security votes.

“The rationale behind this decision, the NFIU official said is to facilitate fast and easy access to funds during security exigencies.”

State authorities have argued that denying them access to cash from their security votes in times of crises could hold them unduly accountable for any security lapses within their jurisdictions.

The consensus among state governments has led to compliance with the directives against cash withdrawals, aligning with the Federal Government’s preference for non-cash dealings.

However, challenges persist, primarily rooted in certain state governments’ insistence on retaining cash reserves to tackle pressing security issues. Despite this, the NFIU will ensure oversight and monitoring mechanisms are in place for these funds.

Addressing concerns over the withholding of cash palliative meant to cushion the impact of subsidy removal, the NFIU official emphasized that investigating such actions falls within the purview of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

The high-ranking NFIU official, who spoke on the condition of anonymity, highlighted the protocol for initiating investigations into such cases, noting that the EFCC or ICPC would need to request pertinent details from the NFIU before any probe commences.

Amid mounting concerns from Nigerians, regarding alleged withholding of cash palliatives, the NFIU’s recent statement has underscored the critical need for transparency and accountability in managing public funds.

In January, the NFIU imposed a ban on cash withdrawals from all public accounts held in banks across federation, state, and local government levels.

The decision was prompted by the alarming rate at which cash was being withdrawn from these accounts, often in contravention of anti-money laundering laws and for potentially corrupt purposes.

From 2015, until the imposition of the ban in January, state governments withdrew approximately N701 billion from their respective accounts.

The Federal Government bodies and local government council authorities respectively withdrew N225 billion and over N156 billion in cash, during the same period.

The federal government granted state governments a grace period, till April 15, 2023, to withdraw cash for security votes only.

The NFIU granted the extension to the state governments after intense negotiations.

Minister of Finance and Coordinating Minister for the Economy Mr. Wale Edun said the source of the cash palliative fund is “a blend of grant to and borrowing by the state governments”.

The minister said: “On the issue of the N5 billion, it’s a combination of grant from the federal government and borrowing by the states. Though the sum of N5 billion is the amount, you will agree with me that to release such fund at once across all the states will be self-defeating because it could lead to an inflationary spiral, exchange rate changing.

“So, it is two billion naira that has been released as an initial intervention and the FCT will be included” he said..”

Since the cash was released in August, many state governors have remained silent on what they have done with the money.

Osun State Governor Ademola Adeleke admitted that he had not spend anything out of the money, despite the urgent need to alleviate the sufferings of the people because of the pain of petrol subsidy withdrawal.

https://thenationonlineng.net/state-govts-open-security-vote-accounts-with-cbn/

3 Likes

Re: State Governors Open Security Vote Accounts With CBN by ManirBK: 9:11am On Nov 20, 2023
Good strategy Good development

God bless the Jagaban of Africa

26 Likes 1 Share

Re: State Governors Open Security Vote Accounts With CBN by Nackzy: 9:29am On Nov 20, 2023
B4 they didn't use to account for it, but now they'll start accounting for it

It's a good one

25 Likes 3 Shares

Re: State Governors Open Security Vote Accounts With CBN by ShugaSneh: 9:37am On Nov 20, 2023
South wast.e and ewedu/oil soup munchers will not hold their governors accountable, the only little developed state in yeroóba land today is Lagos, every south wast.e person claims to be from Lagos state.

My question is, who are the idiots from brown roof state?, Ekiti bush state? Ondun forests?
Claim your bush states with your full chest

7 Likes

Re: State Governors Open Security Vote Accounts With CBN by zeedof(m): 9:38am On Nov 20, 2023
Modern Slavery is going on in Africa right now more especially in Nigeria and many people are not aware of it.

Nigeria political office holders are not supposed to get space in hell fire, may be something worse than that because every of their action is intentional. Sometimes I think if they don’t want to correct the narration or feel it cannot be corrected, even the saint we thought will end up stealing public funds.

Modern Slavery I said,

Do you know 90% of Nigerians that comes to UK are rich? A single person that comes here spends at least 10 million before getting here while couples or families of 3 upward spend more. Either borrowing the money or is yours, if you can raise 10M in Nigeria then you are rich.

Do you know that 90% of Nigerians that comes to UK are educated? We can speak and write and do tasks independently. After we had train ourselves in Nigeria, we come over to serve British.

Do you know that Africans or Nigerians spent 60 to 70 % of there income here in UK on monthly basis, more especially when you just come, or you don’t have ILR yet.

The worst part is that even if you were born and grew up in VGC or the quiet estate in Nigeria, you will get lonely and feel depressed sometimes when you get to UK and if you found yourself in their local town like Catterick Garrison etc. lol na die if you can not fight it.

The question is will this ever stop?

8 Likes 1 Share

Re: State Governors Open Security Vote Accounts With CBN by Racoon(m): 9:38am On Nov 20, 2023
This will still not stop the corruption of security votes.

1 Like

Re: State Governors Open Security Vote Accounts With CBN by Inkling(f): 9:38am On Nov 20, 2023
It is okay.

At least there will be a little transparency in how each state spend their security money.

10 Likes

Re: State Governors Open Security Vote Accounts With CBN by Segun91: 9:38am On Nov 20, 2023
Ok
Re: State Governors Open Security Vote Accounts With CBN by BullwhipFlats: 9:39am On Nov 20, 2023
Nigerians are suffering. The money that should be used to better the lives of masses is what they are all opening accounts to start collecting. Something Peter Obi will NEVER do. Hmm we really missed a leader in that man

1 Like

Re: State Governors Open Security Vote Accounts With CBN by Fortilikio: 9:39am On Nov 20, 2023
Racoon:
This will still not stop the corruption of security votes.
na just make e be like say them seriously dey fight corruption

3 Likes 1 Share

Re: State Governors Open Security Vote Accounts With CBN by BTC159i: 9:40am On Nov 20, 2023

Re: State Governors Open Security Vote Accounts With CBN by Risingblue008(m): 9:40am On Nov 20, 2023
Jfjf
Re: State Governors Open Security Vote Accounts With CBN by AbuTwins: 9:40am On Nov 20, 2023
tongue
Re: State Governors Open Security Vote Accounts With CBN by Niok: 9:40am On Nov 20, 2023
ManirBK:
Good strategy Good development

Good bless the Jagaban of Africa
who will bless the poor masses suffering?
Urchins like you would glorify this rich elite politicians while they suck up the wealth of the country in expense of the masses

Maybe you dey try secure your 30k urchin pauper salary every month,who knows
I respect your hustle
Re: State Governors Open Security Vote Accounts With CBN by FreeStuffsNG: 9:41am On Nov 20, 2023
ManirBK:


https://thenationonlineng.net/state-govts-open-security-vote-accounts-with-cbn/
Thank God! Now FG can monitor this phenomenon called security votes. So much opacity on how it is administered by the Governors. Check my signature for free stuffs!

4 Likes

Re: State Governors Open Security Vote Accounts With CBN by Acesexcell(m): 9:41am On Nov 20, 2023
Let see how our governor will fight this decision tooth to nail and make sure it wouldn't see the light of the day

2 Likes

Re: State Governors Open Security Vote Accounts With CBN by olaolulazio(m): 9:42am On Nov 20, 2023
Good

1 Like

Re: State Governors Open Security Vote Accounts With CBN by Hardy123(m): 9:42am On Nov 20, 2023
Interesting. But viability is what matters most.

Can any thing good come out of APC? Keenly watching cool
Re: State Governors Open Security Vote Accounts With CBN by Nbote(m): 9:42am On Nov 20, 2023
ManirBK:
Good strategy Good development

Good bless the Jagaban of Africa

January 5 2023 directive, overseas by the CBN under the same Emefiele you ediots claimed looted the nation dry but now you are singing Jagaban's praise
Re: State Governors Open Security Vote Accounts With CBN by Acesexcell(m): 9:42am On Nov 20, 2023
Hardy123:
Interesting. But viability is what matters most.
Re: State Governors Open Security Vote Accounts With CBN by nawa4naija(m): 9:42am On Nov 20, 2023
,
Re: State Governors Open Security Vote Accounts With CBN by kolakolex: 9:43am On Nov 20, 2023
Nackzy:
B4 they didn't use to account for it, but now they'll start accounting for it

Not so sure.In this country,once u block one method of embezzlement, they will create 10 new ways of embezzlement.

1 Like

Re: State Governors Open Security Vote Accounts With CBN by Wisereborn: 9:44am On Nov 20, 2023
Those ones monitored and convicted, what was the outcome

In APC administration, see that you make a name for yourself by stealing so much

Their own government is for the leader, with the leaders and by the leaders undecided simple!

1 Like

Re: State Governors Open Security Vote Accounts With CBN by BigBlackPreek(m): 9:44am On Nov 20, 2023
Okay oooo
Re: State Governors Open Security Vote Accounts With CBN by Fiscus105(m): 9:45am On Nov 20, 2023
"Naija my cantry", we must find loopholes and bypass whatever laws they put in place to ensure good governance.


United Kingdom with multiples countries don't have as much as rigid constitution as we have, yet they leave in peace with good governance.

1 Like

Re: State Governors Open Security Vote Accounts With CBN by seunlayi(m): 9:46am On Nov 20, 2023
Nigeria is gone

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