See new instructions as CBN extends deadline on bank customers' cash deposit fee

• The Central Bank of Nigeria (CBN) has decided to extend the suspension of cash deposit processing fees
• The apex bank’s decision is intended to relieve depositors from incurring additional costs when making significant cash deposits
• All financial institutions under the CBN's regulation must continue to accept large cash deposits without charges

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees for banks nationwide until March 31, 2025.

This was contained in a letter signed by the CBN's Director of Banking Supervision, Adetona Adedeji, and addressed to banks and financial institutions, including Access Bank, United Bank for Africa (UBA), Zenith Bank, and Guaranty Trust Bank (GTB), among others.

CBN extends cash deposit fee suspension Photo credit: Benson Ibeabuchi
Source: Getty Images

In the letter, the CBN reiterated that depositors will continue to enjoy fee-free deposits for cash deposits exceeding N500,000 for individuals and N3 million for corporate until March 2025, Punch reports.

Details of the cash deposit fee

The CBN first announced the suspension of cash deposit processing fees in May 2024, which was initially scheduled to end on September 30, 2024.

Prior to this extension, banks imposed a processing fee of 2% on cash deposits above N500,000 for individuals and three per cent for corporate accounts exceeding N3 million.

CBN new instructions to bank

The CBN’s letter stated:

"Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, 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 suspension pertains to the 2% and 3% outlined in the ‘Guide to Charges by banks, other financial institutions and non-bank financial institutions,’ issued on December 20, 2019.”

Banks to debit debtors' bank accounts

Legit.ng earlier reported that the CBN governor, Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.

CBN data showed that the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers' Programme (ABP).

The total disbursement under the ABP scheme amounts to N1.07 trillion, which is distributed to about 4.6 million smallholder farmers growing 21 commodities nationwide.

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Source: Legit.ng