The Central Bank of Nigeria, (CBN) has again extended the suspension of processing fees on cash deposits till March 31, 2025.
With the extension, cash deposits of more than N500,000 by individuals and N3million by companies will continue to attract no charge.
The processing fees were previously set at 2.0 per cent for individual accounts and 3.0 per cent for corporate accounts.
A review on Sunday showed that banks have started sending out notifications to their customers, informing them of the extended grace period.
Analysts described the extension as a continuation of CBN’s efforts to ease the burden of transaction costs on large cash deposits, initially announced earlier this year.
The suspension of fees on large cash deposits dated back to May 2024 when the CBN announced that it was halting the application of the charges outlined in its “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” originally issued in December 2019.
The processing fees were briefly reinstated on May 01, 2024 and were met with strenuous complaints by bank customers, prompting the apex bank swiftly issued a new circular on May 06.
Signed by Adetona Adedeji, Director of Banking Supervision, the circular suspended the fees until September 30. The suspension has now been extended to March 31, 2025.
Market analysts said CBN’s decision to extend the suspension has come at a critical time for Nigeria’s banking sector.
According to analysts, the extension of the fee suspension is part of moves to encourage customers to continue depositing large sums of cash into the banking system, thereby boosting liquidity.
Also, the suspension is expected to provide a significant relief for large depositors and encourage them to keep their funds within the formal banking system.
The extension of suspension comes against the backdrop of Nigeria’s ongoing economic reforms. The CBN has been working to stabilise the financial system amid inflationary pressures, exchange rate fluctuations, and other macroeconomic challenges.
By maintaining the suspension, the CBN aims to sustain confidence in the banking sector, ensuring that both individual and corporate customers feel secure in depositing their funds without incurring additional costs.
The move is also part of broader efforts to promote financial inclusion and digital transactions. By eliminating fees on large cash deposits, the CBN hopes to encourage more Nigerians to embrace the formal banking sector, reducing the reliance on cash-based transactions.
