Nigerians to pay more charges for large cash deposits, withdrawals

Cash in Ghana Must Go

Nigerians who deposit or withdraw N500,000 and above will now pay between 1.5 per cent and 7.5 per cent charges, according to a new banking policy.

The new policy was approved by the Bankers’ Committee of the Central Bank of Nigeria on Thursday.

The Director, Banking & Payments System Department of the Central Bank, Dipo Fatokun, explained the new charges on individual and corporate deposits and withdrawals.

According to Mr. Fatokun, while deposits and withdrawals by individual customers of amount less than N500,000 would attract no charges, corporate customers would not be expected to pay any charge for deposits or withdrawals below N3 million.

However, individual deposits between N500,000 and N1 million would attract 1.5 per cent charge, against 2 per cent for withdrawal.

Individual deposits of amount between N1 million and N5 million would attract a charge of 2 per cent, against 3 per cent for the deposit of a similar amount, while depositors above N5 million would pay 3 per cent as against 7.5 per cent for the withdrawal of equivalent amount.

Equally, all corporate deposits between N3 million and N10 million would attract a 2 per cent charge, against 5 per cent charge for withdrawal, while deposits of amounts between N10 million and N40 million would attract 3 per cent surcharge and 7.5 per cent for withdrawal.

The new charges also affect deposits and withdrawals above N40 million, which would henceforth attract 5 per cent and 10 per cent charge respectively for corporate organizations.

While the new charges would take effect from April 1, 2017 in the existing cashless states including Lagos and Abuja, the policy is expected to be implemented effective May 1, 2017 in Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau states.

The charges are to take effect on August 1, 2017 in Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi, Taraba and Nasarawa states.

From October 1, 2017, the policy would become effective in Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara states.

The CBN said income generated from the processing fees charged above the allowable cash transaction limits would be shared between the CBN and the banks in the ratio 40:60.

The statement also said existing exemptions remained in favour of revenue generating accounts of the federal, state and local governments, which would attract no charges for lodgements only.

Besides, embassies, diplomatic missions, multilateral and aid donor agencies in Nigeria were also exempted from all processing fees relating to the cashless policy.

The Central Bank directed affected deposit money banks in the affected states to commence enlightenment of the customers on the policy, including the limits of cash withdrawals and deposits for individuals and corporate as well as available e-payment options.

The Bank also approved the extension of the cashless policy to cover the entire country.

The Committee at the end of its 493rd meeting in Abuja reviewed the cashless policy by extending it to cover the remaining 30 states of the federation.

Before now, the policy was operational only in Lagos, Ogun, Kano, Abia, Anambra, Rivers and the Federal Capital Territory under a pilot arrangement.


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  • KOLA DOLLAR

    i think the CBN directors and governor really understand their monetary policy that is killing investment and banking.

  • sammyctu ode

    This is a bad policy. What are banks meant for, is it not for deposits and withdrawals and why do we Nigerians have to pay so much as if we are being penalized for owning money? The CBB governor has lost his mind. To me he is trying to help banks cos they don’t have free government money (TSA) to borrow to all these corrupt people who call themselves billionaires. The CBN governor and his overbloated corrupt directors should vacate or be sacked. This useless policy will not allow Nigerians to save in banks. Nigerians don’t get any benefit from banks so why should I give them free money for doing nothing.

  • akor

    Why do i have to pay for depositing money in the bank? This policy will encourage people to keep money in their houses.

  • Alpha

    Can this be true? Now, I just calculated 1.5% of 5 millions and, I think some people are insane! Or could it be that PT didn’t get the real gist, only feeding its readers with quarter truth?

    Whatever informed such repugnant decision by the CBN is reprehensible.

  • smart

    The charges are already unbearable, why add more? I person like me that make lots of transfer per day and paying NGN105.00 per transaction outside the charges for SMS and VAT, etc. this is simply bad new.
    The government deliberately avoided the youth by beginning for NGN500,000 in order to avoid social media backlash. But the youth must know that very very soon, they too will be forced to pay. And someone can even increase it later if Nigerians don’t oppose this policy now.

  • Eldorado

    The corrupt have nothing to lose because the money is stolen.
    But the government is taking the honest man’s money.
    Who comes up with these anti-people policies?
    Shame!

  • George

    APC CHANGI.

    Vote them again to continue robbing you simple.

  • Otile

    God forbid evil. This is a useless government. Why did the Yoruba people impose this robber called Mohmed Buhari on us?

  • Amin

    it is shocking and unbelievable that such a wicked policy is coming at a time nigerians are under immense suffering. ban car importation, increase workers tax, still refusing to increase the minimum wage and now, the banking sector has been terrorized again. change! now we know what it means