The Central Bank of Nigeria (CBN) yesterday announced the suspension of processing fees of two per
cent and three per cent previously imposed on all cash deposits above N500,000 for individuals and N3
million for corporates respectively, with immediate effect.
This was just as the apex bank further insisted that the Nigerian banking industry remained resilient as
key financial soundness indicators were within the regulatory thresholds as captured in the bank’s most
recent Economic Report of 2023.
The central bank said the suspension of the processing fees shall remain in effect until April 30, 2024.
The bank disclosed this in a circular dated December 11, 2023, signed by CBN acting Director, Banking
Supervision, Dr. Adetona Adedeji, which was addressed to all banks, Other Financial Institutions (OFIs)
and non-bank financial institutions under the apex bank’s regulatory supervision.
The central bank further ordered the financial institutions under its purview to accept all cash deposits
from the public without any charges going forward.
The development may not be unconnected with the complaints of cash crunch that had reportedly hit
the banks as customers prefer to keep their money away from the banks partly because of the
exorbitant charges on deposits, especially those exceeding the approved threshold following the
implementation of the cashless policy.
The bank pointed out that the charges prescribed in the guide were arrived at after extensive
consultations with stakeholders, adding that the intendment of the guide was to enhance flexibility,
transparency, and competition in the Nigerian banking industry.
Hence, where a charge is stipulated as “negotiable”, financial institutions are required to draw the
attention of customers to their rights to negotiate and the two parties are required to mutually agree on
the applicable charge via a verifiable means.