The Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees to March 31, 2025. The previous deadline was set for September 30, 2024. This extension aims to ease the financial burden on depositors making large cash deposits.
In a letter addressed to banks and financial institutions, signed by the CBN’s Director of Banking Supervision, Adetona Adedeji, the central bank also maintained the suspension of charges for deposits exceeding N500,000 for individuals and N3 million for corporate accounts.
This extension ensures that depositors will not face additional costs when making large cash deposits during the period. Previously, individuals were charged a two percent fee on deposits exceeding N500,000, while corporate accounts were subject to a three percent fee for deposits over N3 million.
The letter stated, “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 directive is part of the CBN’s cashless policy, which was introduced in 2019 to reduce the amount of cash in circulation and enhance government revenue collection. Initially, the charges were implemented in select states, including Lagos, Ogun, and Kano, before the plan to roll it out nationwide by 2020.
In December 2023, the CBN first suspended the processing fees on large deposits, which was initially set to expire by the end of September 2024. The latest extension will allow depositors to continue making large cash deposits without any charges for an extended period.
The CBN continues to encourage financial institutions to accept cash deposits from the public without additional charges as part of its efforts to promote financial inclusion and a cashless economy.
