September 29, (THEWILL) – The Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees from September 30, 2024 to March 31, 2025.
The CBN disclosed this in a letter to banks and other financial institutions in the country signed by its Director of Banking supervision, Adetona Adedeji where it referenced its previous letter on the suspension of cash deposit processing fees till September 30, 2024.
According to a letter, the suspension on cash deposits exceeding N500,000 for individuals and N3 million for corporate accounts.
The processing fee for individual accounts is 2% of the amount while that of corporate account is 3% of the amount.
The letter reads, “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.”
“This suspension pertains to the 2% and 3% fees outlined in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,’ issued on December 20, 2019.”
The Central Bank of Nigeria stated that all financial institutions under its regulation are required to continue accepting cash deposits from the public without any charges during the specified period.
THEWILL recalls that the CBN had in May, 2024 announced the suspension of cash deposit processing fees till September 30. The extension was to ensure that depositors would not incur additional costs when making substantial cash deposits.
Prior to this directive, the processing fee for individual accounts was two per cent of the amount, while that of corporate accounts was three per cent of the amount.
The letter reads, “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.”
“This suspension pertains to the two per cent and three per cent fees outlined in the ‘Guide to Charges by banks, other financial institutions and non-bank financial institutions,’ issued on December 20, 2019.”
The apex bank stated that all financial institutions under its regulation were required to continue accepting cash deposits from the public without any charges during the specified period.
In 2019, the CBN announced plans to start charging bank customers for cash deposits and withdrawals beginning September 19, 2019.
In a publicly released circular, the apex bank explained that the new transaction fees policy was aimed at reducing the amount of cash in circulation and enhancing the collection of government revenues.
The apex bank stated that the charges were initially applicable only to bank customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory.
However, it indicated that by March 31, 2020, the implementation of the cashless policy would be expanded nationwide.
In December 2023, the CBN issued a directive to banks, other financial institutions, and non-bank financial institutions, suspending the previously imposed processing charges on large cash deposits.
The suspension was initially set to expire on September 30, 2024.
“This directive, outlined in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions,” applies to deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts as earlier stated”, the CBN said.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
