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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