The Central Bank of Nigeria (CBN) has directed another extension of the suspension of cash deposit processing fees until March 31, 2025.
The deposit fee was earlier scheduled to become operational after the September 30, 2024 deadline. However, this is the second time the apex bank will be extending the deposit fee this year.
The bank reintroduced fees for deposits exceeding N500,000 for individuals and corporate account holders on May 1.
Following the banks’ decision, individuals were set to incur a two per cent charge on deposits exceeding N500,000, while corporate account holders faced the same levy on deposits surpassing N3 million.
The ICIR reported that an extension was earlier announced from April 30, 2024, to September 30, 2024. The extension seeks to minimise costs for depositors, enabling them to make substantial cash deposits without facing extra charges.
According to the new circular signed by the director of Banking Supervision, Adetona Adedeji, the apex bank also directed the suspension of cash deposits exceeding N500,000 for individuals and N3m for corporate accounts.
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 ICIR reported how the CBN imposed processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ under reference FPR/DIR/GEN/CIR//07/042 on December 20, 2019.
The CBN statement noted that all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges.
Kehinde Ogunyale tells stories by using data to hold power into account. You can send him a mail at jameskennyogunyale@gmail or Twitter: Prof_KennyJames | LinkedIn: Kehinde Ogunyale