In a move aimed at providing relief to individuals and businesses, the Central Bank of Nigeria (CBN) has announced the suspension of fees on cash deposits until September 30, 2024.
The decision was communicated in a memo dated May 6, 2024, signed by Adetona Adedeji, the Director of Banking Supervision at the CBN. The memo referenced a previous directive issued on December 11, 2023, which suspended processing charges on cash deposits exceeding certain thresholds.
According to the memo, the suspension applies to processing fees previously imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates, as outlined in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019.
“The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024,” the memo stated.
This move comes as welcome news to individuals and businesses alike, providing them with a temporary reprieve from the financial burden associated with cash deposits. By suspending these fees, the CBN aims to ease the financial strain on individuals and businesses, especially amid the ongoing economic challenges.
The decision reflects the CBN’s commitment to supporting economic growth and fostering a conducive business environment in Nigeria. By implementing measures to reduce transaction costs, the central bank seeks to promote financial inclusion and stimulate economic activity across various sectors.
The suspension of cash deposit fees is expected to benefit individuals and businesses across the country, allowing them to conduct financial transactions without incurring additional charges. It also aligns with the CBN’s efforts to encourage the use of electronic payment channels and reduce reliance on cash transactions.
As Nigeria continues its journey towards economic recovery and sustainable development, initiatives such as the suspension of cash deposit fees play a crucial role in facilitating financial stability and promoting inclusive growth.
