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The Central Bank of Nigeria (CBN) has extended its suspension of cash deposit processing fees until March 31, 2025. This extension moves the previous deadline from September 30, 2024, and aims to ease the financial burden on depositors making significant cash deposits.
This update was communicated through an official letter addressed to banks and other financial institutions, signed by Adetona Adedeji, the CBN’s Director of Banking Supervision, on Friday in Abuja. The directive also maintained the suspension of cash deposit fees for amounts exceeding N500,000 for individual accounts and N3 million for corporate accounts.
It is noteworthy that the CBN had initially announced the suspension of these fees in May 2024, with a deadline set for September 30, 2024. However, the new extension aims to provide depositors with more flexibility and ensure that they do not face additional costs when depositing large sums of cash.
Before this suspension, the cash deposit fees for individuals stood at 2% of the total amount deposited, while corporate accounts were charged 3%.
The letter from the CBN stated, “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.”
The directive emphasized that all financial institutions under the regulation of the CBN are required to accept cash deposits from the public during this period without applying any charges. This suspension relates to the fees detailed in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions,” issued on December 20, 2019.
The policy on cash deposit processing fees originally came into effect in September 2019 as part of the CBN’s cashless policy. The initiative sought to reduce the circulation of physical cash and enhance the efficiency of government revenue collection. Initially, the charges were introduced in select regions, including Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory, with plans to expand the policy nationwide by March 2020.
In December 2023, the CBN took a significant step by suspending these charges to alleviate the cost of large cash deposits for Nigerians, particularly as the economy continues to recover. The latest extension to March 31, 2025, allows for further relief, ensuring that depositors can continue to make substantial deposits without incurring fees.
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