The Central Bank of Nigeria (CBN) on Friday announced an extension of the suspension of cash deposit processing fees in a move aimed at providing respite to Nigerians grappling with economic pressures.
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, on Friday in Abuja.
It also directed the suspension of cash deposits exceeding N500,000 for individuals and N3m for corporate accounts.
The CBN had in May, 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.
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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.”
This decision comes amidst growing concerns about the impact of the fees on individuals and businesses, particularly in the face of rising inflation and other economic challenges.
Prior to the suspension, banks and other financial institutions imposed a processing fee of two percent for individual accounts and three percent for corporate accounts on large cash deposits. This fee had been a source of discontent among many Nigerians, who argued that it was unfair and disproportionately affected those with limited access to electronic banking services.
The CBN’s decision to extend the suspension of processing fees is a testament to its commitment to supporting the Nigerian economy and protecting the interests of its citizens. By providing relief from these charges, the CBN is helping to reduce the financial burden on individuals and businesses, allowing them to focus on other priorities.
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