Some Labour Unions have commended the Federal Government and the Financial Institutions for the smooth take-off of the Nigerian Financial Intelligence Unit (NFIU) in the country.
The unions are the Nigeria Union of Local Government Employees (NULGE) and the Senior Staff Association of Statutory Corporations and Government Owned Companies (SSASCGOC).
Mr Ibrahim Khaleel, NULGE president and Mr Ayo Olorunfemi, SSASCGOC General Secretary, gave the commendation in separate statements on Wednesday in Abuja.
Khaleel said that the adherence of financial institutions to guidelines of NFIU on the Joint state-Local government funds would spur development and end insecurity in the country.
According to Khaleel, the smooth take-off of the NFIU and the way the banks have cooperated for its smooth take off, is encouraging, in spite of opposition it faced from the governors, who feed fat on local government (LG) funds.
“The Federal Government, especially President Muhammadu Buhari should be commended for standing on the side of the people, rule of laws and the development of the country, by insisting on NFIU guidelines.
“Also, the Financial institutions must be commended for strict adherence to the rules, while we praise the Unit itself for leading the way in doing a very good job,” he said.
Khaleel noted that, effective regulation of arbitrary withdrawals of LGA funds by state governments from the joint local government areas and state joint accounts by the Nigeria Financial Intelligence Unit (NFIU) would reduce looting of council finances.
The NULGE President, however, described the implementation as a giant step towards granting financial autonomy to local governments.
He also assured Nigerians of the union’s readiness to work with relevant agencies of government to ensure that successful implementation of the guidelines was achieved.
“To encourage the Federal Government, President Buhari, the banks and other financial institutions and the NFIU itself, the union will train its members across the length and breadth of the country to keep eagle eyes on the operations of the funds going to LG henceforth.
” I am assuring you, we will ensure that flagrant abuse of the system and the funds is stopped.” khaleel said.
Mr Ayo Olorunfemi, SSASCGOC General Secretary, in his own statement, said the initiative was commendable.
According to him, the state governors have over the years frustrated development at the grassroots by refusing to allow financial autonomy for local councils.
The SSASCGOC general secretary commended President Buhari, for sanctioning the guidelines, which had renewed the faith of Nigerians and the labour movement in the anti-corruption fight of the present government.
NAN reports that NFIU is the Nigerian arm of the global financial intelligence Units (FIUs) domiciled within the Economic and Financial Crimes Commission (EFCC) as an autonomous unit and operating in the African Region.
The NFIU sought to comply with international standards to combat Money Laundering and Financing of Terrorism and proliferation.
The governors had failed to secure a Court judgement to halt the guidelines, which commenced on June 1, 2019.
The NFIU had on May 6 issued the guideline to reduce the vulnerabilities created by cash withdrawals from local government funds throughout the country.
This had fully restored the mandate of the operations of State and Local Government Joint Accounts to be used solely for the distribution of funds directly to the accounts of the local governments areas.
