The Central Bank of Nigeria (CBN) has once again extended the suspension of processing fees on cash deposits above N500,000 for individuals and N3,000,000 for corporates until March 31st, 2025.
This latest decision allows individuals and corporate entities to continue depositing cash exceeding these thresholds without incurring additional charges until the end of the first quarter of next year.
Banks across Nigeria have started sending out notifications to their customers, informing them of the extended grace period. This is a continuation of the CBN’s efforts to ease the burden of transaction costs on large cash deposits, initially announced earlier this year.
The suspension of fees on large cash deposits dates back to May 2024 when the CBN announced that it was halting the application of the charges outlined in its “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” originally issued in December 2019.
The processing fees, set at 2 percent for individual accounts and 3 percent for corporate accounts, were previously applied to any cash deposits exceeding N500,000 and N3,000,000, respectively.
However, after briefly reinstating these charges on May 1st, 2024, some confusion arose among bank customers, who were suddenly faced with fees on their large deposits. In response, the CBN swiftly issued a new circular on May 6th, 2024.
Signed by Adetona Adedeji, Director of Banking Supervision, the circular confirmed the suspension of these fees until September 30th, 2024, a timeline that has now been extended to March 31st, 2025.
Impact of the Fee Suspension
The CBN’s decision to extend the suspension has come at a critical time for Nigeria’s banking sector. The extension of the fee suspension is widely seen as a move to encourage customers to continue depositing large sums of cash into the banking system, thereby boosting liquidit
In line with this, banks have urged their customers to take advantage of the extended suspension. Depositors who exceed the N500,000 threshold for individuals or the N3,000,000 threshold for corporate accounts will continue to avoid the 2 percent and 3 percent processing fees previously levied on such transactions. This is expected to provide a significant relief for large depositors and encourage them to keep their funds within the formal banking system.
The decision to extend the suspension comes against the backdrop of Nigeria’s ongoing economic reforms. The CBN has been working to stabilize the financial system amid inflationary pressures, exchange rate fluctuations, and other macroeconomic challenges.
By maintaining this suspension, the CBN aims to sustain confidence in the banking sector, ensuring that both individual and corporate customers feel secure in depositing their funds without incurring additional costs.
The move is also part of broader efforts to promote financial inclusion and digital transactions. By eliminating fees on large cash deposits, the CBN hopes to encourage more Nigerians to embrace the formal banking sector, reducing the reliance on cash-based transactions.
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