CBN Suspends Cash Deposit Fees Amid Persistent Scarcity

The Central Bank of Nigeria (CBN) has taken decisive action by suspending the processing fees of two percent and three percent previously levied on cash deposits exceeding N500,000 for individuals and N3 million for corporates, respectively.

The suspension, effective immediately, is anticipated to remain in force until April 30, 2024.

The move comes amidst growing concerns among residents in the Federal Capital Territory, Abuja, and other regions who have faced difficulties accessing sufficient cash from banks and ATMs.

Some individuals, including business operators, have expressed frustration over limited withdrawal amounts and the detrimental impact on their daily transactions.

Dr. Adetona Adedeji, the acting Director of Banking Supervision at the CBN, affirmed the decision in a letter, stating, “The Central Bank of Nigeria, therefore, suspends the charging of processing fees of two and three percent previously charged on all cash deposits above these thresholds with immediate effect.”

The directive extends to all financial institutions regulated by the CBN, mandating them to accept cash deposits from the public without imposing any charges.

The move is expected to encourage increased deposits and circulation of money within the economy.

Residents and businesses have faced notable challenges, with reports of ATMs running out of cash and withdrawal limits affecting various daily activities.

The CBN’s intervention aims to address these concerns and enhance liquidity, particularly as individuals and businesses navigate the evolving economic landscape.

Despite the suspension of fees, the central bank remains committed to the broader objectives of its cashless policy.

Dr. Uju Ogunbunka, President of the Bank Customers Association of Nigeria, expressed optimism about the decision, believing that it would contribute to addressing the ongoing cash scarcity while not undermining the overall cashless policy goals.

As the suspension takes effect, individuals and businesses eagerly anticipate an improvement in the availability of cash, easing the challenges posed by the persistent scarcity experienced in recent times.