As a result, the Naira in 2022, up to N900/$1, will almost reach N1000/$1. Since then, the Naira has recovered rapidly, following the initiative of the financial body that manages the country’s monetary policy.
Last month, the Central Bank of Nigeria (CBN) announced the nation’s redesigned currency in an effort to stop the devaluation of the Naira.
The redesign, as noted, is meant to end the hoarding of old notes, along with other strategies to counter the obstacles that have caused the Naira to deflate.
The CBN also created several new monetary protocols including withdrawal limits, and directives that allow for investigation in case of any breach of these rules.
Recently, more policies have been applied to this monetary evolution, especially directed at government officials.
In a statement released by the director and chief executive of Nigerian Financial Intelligence Unit (NFIU)Modibbo R. HammanTukur, announced that Nigerian officials will be prohibited from withdrawing cash from government accounts from March 1, 2023.
The new rules apply to all levels of government, including state, local, and federal. These new rules, apart from fighting the type of money laundering that causes currency devaluation, are also being implemented to increase the growth of the cashless economy.
The idea of a cashless economy has been an important part of the CBN’s initiative to fight inflation, especially in an era where digital transactions have been widely accepted.
In accordance with the new rules, the director of NFIU said “Public servants are increasingly vulnerable to money laundering and predicate violations as they are affected by cash withdrawals from public accounts.”
“If in the unlikely event that a public official feels the need to withdraw cash, he can request approval for a waiver from the presidency that can be granted on a case-by-case basis,” he added.
According to an analysis by the NFIU, officials withdrew about 1.1 trillion naira ($2.45 billion) from government accounts from 2015 to 2022, most of which exceeded previous withdrawal limits.
Also about 85% of the 3.23 trillion naira ($7.2 billion) in circulation is currently held outside banks.