The Central Bank of Nigeria (CBN) has announced the extension of the suspension of processing charges on cash deposits exceeding specific thresholds until September 30, 2024. This decision, communicated through a letter signed by Adetona Adedeji, acting director of banking supervision, mandates the continued suspension of the 2 percent and 3 percent fees levied on cash deposits above N500,000 for individuals and N3 million for corporations.
The imposition of processing charges on cash deposits exceeding these thresholds was introduced by the apex bank in December 2019, as part of the Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions. However, in December 2023, the CBN temporarily suspended these fees on all cash deposits surpassing the specified limits.
With this latest extension, all banks are instructed to accept cash deposits without imposing any charges until September 30, 2024, as per the report.
This development comes amidst concerns raised over the Federal government’s recent introduction of a 0.5 percent cybersecurity levy on electronic transactions, announced by the CBN. Many stakeholders, including Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), have expressed deep apprehension regarding the cybersecurity levy. Yusuf highlighted the challenges faced by businesses and citizens in light of ongoing economic reforms and cautioned against the additional burden posed by multiple federal taxes and levies.
The extension of the suspension of cash deposit charges underscores the CBN’s commitment to ensuring financial inclusivity and facilitating seamless transactions within the Nigerian banking system. However, concerns persist regarding the potential impact of newly introduced levies on electronic transactions on businesses and economic growth.
