In Nigeria, there is a noteworthy development for businesses and individuals: the opportunity to make substantial deposits without incurring processing fees.
This change comes in the wake of a directive from the Central Bank of Nigeria (CBN), issued to all banks, financial institutions, and non-bank financial entities.
The directive instructs them to halt the imposition of processing fees on deposits exceeding ₦500,000 for individual accounts and ₦3 million for corporate accounts.
Previously, deposits surpassing these thresholds incurred processing charges of 2% for individuals and 3% for corporate entities. However, the CBN has now temporarily suspended these fees, and this suspension is effective until April 30, 2024.
The memo conveying this directive, signed by the Acting Director of Supervision, Adetona Adedej, explicitly states, “Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charge going forward.”
What does this directive imply for financial institutions in Nigeria? Simply put, they will no longer generate revenue from these processing fees. This change is advantageous for both small and large businesses, as well as individual depositors.
Moreover, this move reinforces the apex bank’s cashless policy by encouraging the public to retain their funds within financial institutions. Essentially, this measure aligns with the goal of promoting a cashless economy.
It’s worth noting that in June 2023, the CBN had previously introduced transaction caps for contactless payments, defining daily transaction limits at ₦15,000 and cumulative caps at ₦50,000 in a circular.
