In the Nigerian banking sphere, a crucial directive was recently issued through a circular dated May 6, 2024, signed by the Director of Banking Supervision, Adetona Adedeji. This directive has raised concerns among customers of some Deposit Money Banks regarding the start of pricing of cash deposit processing fees from May 1.
According to information reported by Fatshimetrie, an email shared by one of the bank’s customers provided proof of this new pricing. Indeed, the bank had previously announced the implementation of a two percent tax on deposits exceeding N500,000 for individuals and three million Naira for business account holders.
However, the latest circular from the Central Bank of Nigeria (CBN) indicates that these processing fees are now suspended. The circular mentions: “Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing fees imposed on cash deposits above N500,000 for individuals and N3,000,000 for companies as stipulated in the ‘Guide to Fees of Banks, Other Financial Institutions and Non-Banking Financial Institutions’ issued on December 20, 2019,” the CBN said.
“The Central Bank of Nigeria hereby extends the suspension of the 2% and 3% processing fees previously charged on all cash deposits above these thresholds, until September 30, 2024.”
This move by the CBN comes as a measure of relief to many customers and stakeholders in the Nigerian banking sector. It aims to alleviate the financial burden on depositors and guarantee more peaceful access to banking services. The move highlights the importance of listening to customer concerns and taking proactive steps by regulatory authorities to maintain a stable and transparent financial environment.
In conclusion, the suspension of cash deposit processing fees in Nigeria is a significant move that demonstrates the CBN’s commitment to promoting trust and transparency in the country’s financial system.