Following the directive by the Nigerian Financial Intelligence Unit, NFIU barring state governments from spending funds meant for local governments, banks have begun to dishonour cheques coming from states on behalf of local governments.
The Spokesman for the NFIU Sani Tukur confirmed that the directive had recorded hundred per cent compliance. He appreciated the banks and the efforts they have made in ensuring that only cheques from local governments are honoured.
The NFIU had on May 6th, issued ‘Guidelines to Reduce Vulnerabilities Created by Cash Withdrawals from Local Government Funds throughout Nigeria,’ which barred governors from tampering with funds meant for local government areas from June 1.
Banks were directed to ensure the full implementation of the guidelines with effect from June 1.