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LG Funds: State Governors In Dilemma As Banks Reject Cheques

by OtownGist

State Governors are dilemma as banks are said to have complied with the directive of the Nigeria Financial Intelligence Unit barring State Governments from spending funds for local governments.

Reports said most banks are now compling with the directive by dishonouring cheques coming from States on behalf of the local governments.

THE PUNCH quoted spokesman of the NFIU, Sani Tukur, to have said there is 100% compliance.

” Thanks to the banks and the efforts they made in ensuring only cheques from local governments are honoured.

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” I am aware that some banks have been calling to say they received cheques from State governments but they have not been cleared by the bank. Of course, they should know by now that only cheques by specific local governments will be cleared.

” As long as the cheques are not from the local governments, they will not be honoured by any bank because they stand the risk of being sanctioned”

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State Governors under the aegis of the Nigerian Governors Forum, have not been finding it easy. In a letter to President Buhari, they argued that nothing in the NFIU Act 2018 gives the agency the power to give such a directive.




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