CBN Extends Deposit Fee Waiver by 6 Months

CBN Suspends Deposit Charges

“This suspension pertains to the 2% and 3% fees outlined in the 'Guide to Charges by Banks, Other Financial...”

The Central Bank of Nigeria extends suspension of processing fees on cash deposits over ₦500,000 for individuals and ₦3,000,000 for corporates until March 31, 2025.

The Central Bank of Nigeria (CBN) has extended the suspension of processing fees on cash deposits by six more months. Initially set to expire on September 30, 2024, the new deadline is now March 31, 2025. This development is a continuation of the CBN's policy to stimulate liquidity and encourage cash deposits.

According to the CBN's circular, dated September 24, 2024, and signed by Director of Banking Supervision Adetona Adedeji, all financial institutions regulated by the CBN should continue accepting cash deposits from the public without charges until March 31, 2025. This suspension affects large deposits of over ₦500,000 for individual accounts and ₦3,000,000 for corporate accounts.

The CBN first introduced this suspension in December 2023, citing its “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” released in 2019. By extending this policy, the CBN aims to support individuals and businesses, especially small and medium-sized enterprises, by eliminating the additional financial burden of processing fees. 

This move is also seen as a strategy to promote the CBN's cashless policy and address cash scarcity issues.

“Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates,” the apex bank said.

“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% fees outlined in the 'Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions, issued on December 20, 2019.”

The Central Bank of Nigeria has instructed financial institutions to continue accepting cash deposits from the public without any charges until March 31, 2025. This directive means that individuals and businesses can deposit cash into their accounts without incurring extra fees, making it easier to manage finances.

Eligible Deposits

Large deposits over ₦500,000 for individual accounts

Large deposits over ₦3,000,000 for corporate accounts

Background

In December 2023, the CBN initially suspended processing fees on large deposits until April 30, 2024, which has now been extended to March 31, 2025. This move aims to support individuals, small and medium-sized enterprises, and encourage cashless transactions while addressing cash scarcity issues.