CBN suspends charges on cash deposits above N500k until April 2024

The Central Bank of Nigeria (CBN) has suspended the processing fees on cash above N500,000 and above.

The CBN acting director of banking supervision, Adetona Adedeji revealed this on Monday, December 11, 2023.

According to him, the new development under the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” issued on December 20, 2019, with reference number (FPR/DIR/GEN/CIR/07/042), affects deposits above N500,000 for individual accounts and N3,000,000 for corporate accounts.

The suspension shall remain in effect until April 30, 2024, CBN said.

The CBN had in 2019 declared that it would begin to levy bank customers making cash deposits and withdrawals as part of its efforts to reduce cash in use.

The CBN also made known that for corporate accounts, the Deposits Money Banks would charge five per cent processing fees for withdrawals and three per cent processing fees for lodgments of amounts above N3,000,000.

Consequently all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward’

“Please be guided accordingly,” the apex bank said.

Meanwhile, some bank customers in the Federal Capital Territory (FCT) have appealed to the CBN to urgently address cash crunch issues to ensure swell celebrations during the yuletide.

Some of the customers, who are also small business owners, told the News Agency of Nigeria (NAN) in Abuja on Monday that the development would result in financial transaction difficulties, if not addressed.

Esther Eduk, a customer, said she visited no fewer than four different banks’ Automated Teller Machines (ATM) points but could not access cash.

She said the development negated the yuletide season which was meant for sharing love and giving.

“I went to my bank to collect money but I was surprised that they did not have it. All the bank ATM points that I went to along Nyanya-Mararaba road had no cash in them.

“This is very discouraging and considering this season, it is not healthy,’’ she said.

Another customer and a Point of Sale (PoS) operator, Lucky Igado, said he was unable to withdraw money from his bank.

Mr Igado said the situation had halted his business which was his only source of income.

He appealed to the CBN to urgently resolve the issue.

“I went to the bank to withdraw some money for my business but I did not get it.

“I was even ready to pay extra just to keep my business going but I didn’t get it. This is frustrating.

“President Bola Tinubu was affected by this cash crunch issue during his election. He should please help us to make ends meet,’’ he said.

Another customer, Adaora Ejeh, also appealed to banks to make cash available to ease the stress faced by customers.

✍️ Temitope Hassan